Q2 Warner Music Group Results
May 9, 2014

Warner Music Group Corp. announces its second-quarter financial results for the period ended March 31, 2014.

Here are the highlights:
- Revenue declined 3% on a constant-currency basis
- Digital revenue increased 6% on a constant-currency basis 
 - Cash balance improved to $149 million for the quarter ended March 31, 2014 from $129 million for the quarter ended December 31, 2013 
 - Net loss was $59 million versus net income of $4 million in the prior-year quarter
 
“We have begun to see the strength in our release schedule for the remainder of the fiscal year,” said Stephen Cooper, Warner Music Group’s CEO. “Through our A&R, marketing and promotional efforts, we continue to discover and develop new artists and further the careers of established artists.”
 
“We were very pleased to complete another successful refinancing last month, which will generate cash interest savings of approximately $30 million per year,” added Brian Roberts, Warner Music Group’s Executive Vice President and CFO.  “We remain strongly committed to delivering solid free cash flow in the quarters to come.”

For the quarter, revenue declined 3.3% (or 2.7% in constant currency).  Excluding the July 1, 2013 acquisition of Parlophone Label Group (“PLG”), revenue declined 13.9% (or 13.4% in constant currency), due to a lighter release schedule than in the prior-year quarter.  Including PLG, the growth in artist services and expanded rights revenue, digital revenue and Recorded Music licensing revenue was more than offset by declines in Recorded Music physical revenue and Music Publishing mechanical and performance revenue.  Constant-currency revenue growth in the U.K., Italy, France and other parts of Europe, driven in part by the PLG acquisition, was more than offset by declines in the U.S., Canada, Japan and other parts of Asia.  Digital revenue grew 5.0% (or 5.7% in constant currency), and digital revenue represented 45.2% of total revenue, compared to 41.6% in the prior-year quarter. Growth in digital revenue reflects the acquisition of PLG as well as growth in streaming revenue, partially offset by declines in download revenue largely resulting from the release schedule.  Excluding PLG, digital revenue declined 5.3% (or 4.7% in constant currency).
 
Adjusted operating margin declined 4.6 percentage points to 4.3% from 8.9%.  Adjusted OIBDA declined 10.1% to $107 million and Adjusted OIBDA margin contracted 1.2 percentage points to 16.4% from 17.6%.  The decline in Adjusted OIBDA and Adjusted OIBDA margin is a result of the release schedule. Excluding PLG, Adjusted OIBDA declined 21.8% to $93 million and Adjusted OIBDA margin declined 1.6 percentage points to 16.0%. 
 
Adjusted net loss was $26 million compared to adjusted net income of $7 million in the prior-year quarter.  
 
As of March 31, 2014, the company reported a cash balance of $149 million, total long-term debt of $2.869 billion and net debt (total long-term debt, including the current portion, minus cash) of $2.720 billion. There was no balance outstanding on the revolver as of March 31, 2014.




 
Breaking News
Louie Diaz Named PD At KLIF/Dallas
In Brief - August 29, 2014
The Week In Review: 8/24-8/29
August 28, 2014
NuVoodoo Releases Social Media Findings Of Ratings Prospect Study
T-Mobile's Music Freedom Expands With Six New Music Streaming Services
In Brief - August 28, 2014
August 27, 2014
STRATA Survey: Ad Agencies’ Interest In Digital Video Jumps 45% From A Year Ago
In Brief - August 27, 2014
August 26, 2014
Scott Carter Promoted To SVP/Marketing At Epic Records
CCM+E Nashville Debuts ALT 98.3
CBS Radio, Townsquare Media Partner To Create The Michigan News Newtwork
Stacey Thomas Appointed Director, Media Integration For CCM+E Philadelphia
In Brief - August 26, 2014
August 25, 2014
Lance Houston Named New PD Of Boston's 101.7 The Bull
In Brief - August 25, 2014
August 22, 2014
eQB NOW
The Week In Review: 8/18-8/22
Chris Edge Adds PD Duties At WDCG/Raleigh
SoundExchange Q2 Digital Radio Report Highlights Digital Radio Transformation
In Brief - August 22, 2014
August 21, 2014
NuVoodoo Ratings Prospect Study Reveals Broadcast Radio Beats Pandora For Music Satisfaction
CBS Radio Adds To Sports Programming Leadership Team
iHeartRadio Survey: Carrie Underwood Music’s Best Female Role Model
In Brief - August 21, 2014
Music News
MTV VMAs Spike Sales For Beyoncé and More
Quick Hits: Bruce Springsteen, John Legend, Shakira
The Week In Review: 8/24-8/29
Quick Hits: Chris Brown, Weezer, Miley Cyrus, Brandon Flowers, Paul McCartney, Bob Dylan
Wiz Khalifa Earns First #1 Album, Taylor Swift Debuts At #1 With New Single
Quick Hits: Ariana Grande, Kings of Leon, Lady Gaga, Neil Young
Usher Slowly Revealing Tour Plans
Quick Hits: Bad Boy Records, Ty Dolla $ign, Gerard Way, Bob Dylan
Beyoncé, Miley Cyrus Rule 2014 MTV VMAs
Slipknot Unmasks Details of The Gray Chapter
Quick Hits: Eminem & Shady Records, Ed Sheeran, Prince, Grouplove, Cobra Starship
Quick Hits: Jessie J, Foo Fighters, Mariah Carey & Nick Cannon, Genesis, Fall Out Boy
The Week In Review: 8/18-8/22
Nickelback Signs With Republic Records
Quick Hits: Nico & Vinz, Sam Smith, Weezer, Ariana Grande, Shelby Lynne, Enrique Iglesias, T.I., Iggy Azalea
FMQB NOW

Jeff Sottolano
Director of Programming
CBS Radio

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!