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
iHeartMedia Introduces On Demand Services iHeartRadio Plus & iHeartRadio All Access
2016 NAB Marconi Radio Award Winners Announced
September 22, 2016
Ray Nelson Joins Cumulus As VP/Market Manager, Huntsville, AL
Britney Spears Headlines An All-Star Lineup For B96/Chicago's Jingle Bash
Concord Music Group Appoints Tom "Grover" Biery SVP/Digital Marketing, Strategy and D2C
B98.5 & Melissa Carter Celebrate Atlanta Pride 2016
September 21, 2016
iHeartMedia Honolulu Unveils On-Air Lineup For 93.9 The Beat
Cumulus Brings "Zazza Mornings with Cheree" To WZNS/Fort Walton Beach & WABD/Mobile
New ASCAP Digital Team To Transform Services For Members, Licensees
In Brief - September 21, 2016
September 20, 2016
Report: Pandora Tops Rapidly Changing US Music Streaming Market
2016 iHeartRadio Music Festival Superstar Presenters and Attendees Revealed
CBS Radio Renews Content and Distribution Agreement with Westwood One
WODS/Boston Presents 103.3 AMP Radio's Electric Bounce House
September 19, 2016
NuVoodoo Ratings Study: Radio Station Contests Have A Problem
Big Boy Annouces Real 92.3/Los Angeles' "The Real Show"
NAB: FM Chip in Smartphones Data For North America
September 16, 2016
Pandora and Warner Music Group Announce Direct Licensing Agreement
Throwbacks Come To Peoria On WNGY (G102.3)
Nielsen Appoints Haley Jones Director Of Radio
September 15, 2016
Pandora Rolls Out Pandora Plus
Myrtle Beach’s Star 92.1 Becomes Energy 92.1
iHeartMedia Denver names Ryan Cline SVP/Sales & Michael Souza SVP/Strategic Partnerships
Nielsen To Deliver All-Electronic Measurement To Local TV Markets in 2017
Music News
Metallica to Perform on The Howard Stern Show
The Weeknd Releases New Single with Daft Punk
FMQB Photo Pass: AC/DC
Beyoncé to Headline Charity Tidal X Concert
Quick Hits: The Weeknd, Metallica, Lady Gaga, Chance the Rapper & Kanye West, Tori Amos
Quick Hits: Prince, Mariah Carey, AC/DC
Five New Debuts in Billboard 200's Top Ten
Quick Hits: RHCP, Lady Gaga, Bon Jovi, Green Day
Quick Hits: Prince tribute concert, Coldplay, Billie Joe Armstrong
Lady Gaga's New Album Joanne Arrives October 21
FMQB Retro-Active: Ken Sharp Reviews Jeff Lynne's ELO Live In Concert and Chats with the Unique Performer
Quick Hits: DNCE, Tom Morello & Global Citizen: The World On Stage
Lady Gaga Scores Massive #1 Most Added Honors At Radio
Quick Hits: Snoop Dogg & Zayn
Travis Scott Debuts at #1 on Billboard 200
FMQB NOW

          Question Of
           The Week

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!