Warner cuts losses in fiscal Q1, revenues up YoY
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Warner Music Group filed a net loss of $37 million in its fiscal Q1 ended December 31, 2013, compared to $80 million over the following period in 2012. In its latest financial report, the company explained that the prior year quarter loss reflected the impact of an $83 million loss on the extinguishment of debt in connection with its November 2012 refinancing of certain indebtedness.
Meanwhile, revenues for the three-months to December 31, 2013 grew 6% (6.8% in constant currency) to $815 million, driven by the July 1, 2013 acquisition of Parlophone Label Group.
Excluding PLG revenue, revenue declined 3.6% (or 2.9% in constant currency), which the company attributes to a lighter release schedule than in the prior-year quarter.
Digital revenues across the whole group were up 8% during the quarter, moving from $255 million to $276 million.
Recorded Music saw overall revenues rise 5% year-on-year in the quarter from $657 million to $691 million. Excluding PLG, revenue declined 6.1%. Digital revenues for recorded music were up 8% to $256 million.
Publishing saw an overall increase in revenues of 10% year-on-year from $116m to $128m. Digital revenues were up 11% in the quarter, moving from $19m to $21m.
Synchronisation revenue was up 18.2% (or 23.8% in constant currency).
Performance revenue was up 8.5% (or 10.9% in constant currency), and mechanical revenue grew 3.8% on both an as-reported and constant-currency basis.
“There were a number of bright spots this quarter, including strong growth in steaming revenue for our recorded music business and solid performance from our music publishing business,” said Stephen Cooper, Warner Music Group’s CEO. “While we had a light release schedule this quarter, we are enthusiastic about our release schedule for the second half of the fiscal year.”
“We maintained our Adjusted OIBDA margin for the overall business this quarter and expanded our Music Publishing OIBDA margin,” added Brian Roberts, Warner Music Group’s executive vice president and CFO. “Additionally, we remain on track with our PLG integration plans.
Source: Music Week
