WMG Reports Higher Profits On Lower Sales

Despite declining CD sales and an increasingly dismal economy, WMG managed to meet analysts’ expectations and hold its own.

• 
  2008 fiscal year revenue grew 3% to $3,491M, and declined 2% on a constant-currency basis. 34 revenue totaled $854M a decrease of
  1% from the prior-year quarter or 5% on a constant-currency basis.
• 2008 digital revenue rose 39% to $639M or 18% of total. Q4 digital revenue was $167M or 20% of total revenue up from $166M in the third quarter of fiscal ’08 and up 28% from the prior-year quarter. Full-year 2008 digital revenue rose 39% to $639M or 18% of total revenue.
• Operating income from continuing operations declined 20% to $66 million…

in the quarter compared to $83 million in the prior-year
quarter. Prior quarters had benefited from a $17M legal settlement and
been dragged down by whopping $9M in expenses during the failed
aquisition of EMI.

• Operating income before depreciation and amortization from continuing operations fell 8%. (more)

WMG’s saw revenue fall 3.7% with weakness in the U.S. offset by
sales in Japan, France and Italy. Major sellers included Metallica, Kid
Rock and Mariya Takeuchi.