Warner Music Group Reports Continuing Losses

This morning Warner Music Group reported:

• Revenue of $861M for the fourth quarter of 2009 increased 1% from the prior-year quarter. Full-year 2009 revenue declined 9% to $3,176 million.
• Digital revenue was $184 million or 21% of revenue; up 5% from the previous quarter. Full-year 2009 digital revenue rose 10% to $703 million or 22% of total revenue.
• Income from continuing operations for the quarter declined 18% to $54 million. Fourth-quarter 2009 operating income included $14 million in severance charges. For the full-year 2009, operating income from continuing operations was $135 million, a 35% decline from $207 million in fiscal year 2008.

• Operating income before depreciation and amortization (OIBDA) for the quarter fell 10% to $120 million from $134 million in the prior-year quarter. Fourth-quarter 2009 OIBDA included the Severance Charges. OIBDA for fiscal year 2009 was $397 million, down 16% from $475 million in fiscal year 2008.
• For the quarter, loss from continuing operations was ($0.12) per diluted share compared to income from continuing operations of $0.04 per diluted share in the prior-year quarter. Fourth-quarter 2009 income included $0.09 per diluted share in Severance Charges. For the fiscal year, loss from continuing operations was ($0.67) per diluted share versus loss from continuing operations of ($0.24) in fiscal year 2008.