WMG » Topics » of total company revenues

These excerpts taken from the WMG 10-Q filed May 7, 2009.

Total Revenues

Total revenues decreased by $132 million, or 17%, to $668 million for the three months ended March 31, 2009 from $800 million for the three months ended March 31, 2008. Recorded Music and Music Publishing revenues represented 80% and 20% of total revenues for the three months ended March 31, 2009, respectively, compared to 81% and 19% for the three months ended March 31, 2008, respectively. U.S. and international revenues represented 49% and 51% of total revenues for the three months ended March 31, 2009, respectively, compared to 45% and 55% for the three months ended March 31, 2008, respectively. Excluding the unfavorable impact of foreign currency exchange rates, total revenues decreased $72 million, or 10%, for the three months ended March 31, 2009.

Total digital revenues increased by $9 million, or 5%, to $173 million for the three months ended March 31, 2009 from $164 million for the three months ended March 31, 2008. Total digital revenues represented 26% and 21% of consolidated revenues for the three months ended March 31, 2009 and 2008, respectively. Total digital revenues for the three months ended March 31, 2009 were comprised of U.S. revenues of $113 million, or 65% of total digital revenues, and international revenues of $60 million, or 35% of total digital revenues. Excluding the unfavorable impact of foreign currency exchange rates, total digital revenues increased by $17 million, or 11%, for the three months ended March 31, 2009.

 

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Recorded Music revenues decreased by $115 million, or 18%, to $537 million for the three months ended March 31, 2009 from $652 million for the three months ended March 31, 2008. The decrease in physical and other revenues (which, as mentioned above in Overview, includes expanded-rights revenues) of $133 million was a result of a lighter release schedule versus the prior-year quarter as well as the as the ongoing transition in the recorded music industry characterized by a shift in consumption patterns from sales of physical products to new forms of digital music. Additionally, the weak global economy and retail environment continued to have an impact on our results. In addition, the decrease in sales of physical products and other revenues was also partially offset by an increase in digital revenues of $11 million. The increase in digital revenues was driven by global growth of downloads. Digital revenues were impacted by the timing of our release schedule, the timing and success of new product introductions and continued worldwide economic pressures. As digital revenues become a greater percentage of overall revenues, fluctuations in digital revenues between periods is becoming increasingly driven by the timing of releases. Licensing revenues increased $7 million versus the prior-year quarter. Excluding the unfavorable impact of foreign currency exchange rates, total Recorded Music revenues decreased $69 million, or 11%, for the three months ended March 31, 2009.

Music Publishing revenues decreased by $20 million, or 13%, to $135 million for the three months ended March 31, 2009 from $155 million for the three months ended March 31, 2008. The decrease was due primarily to declines in mechanical as a result of the continued decline in physical sales in the overall recorded music industry. Excluding the unfavorable impact of foreign currency exchange rates, total Music Publishing revenues decreased $7 million, or 5%, for the three months ended March 31, 2009.

Total Revenues

Total revenues decreased by $243 million, or 14%, to $1,546 million for the six months ended March 31, 2009 from $1,789 million for the six months ended March 31, 2008. Recorded Music and Music Publishing revenues represented 83% and 17% of total revenues for the six months ended March 31, 2009, respectively, compared to 84% and 16% for the six months ended March 31, 2008, respectively. U.S. and international revenues represented 45% and 55% of total revenues for the six months ended March 31, 2009, respectively, compared to 45% and 55% for the six months ended March 31, 2008, respectively. Excluding the unfavorable impact of foreign currency exchange rates, total revenues decreased $135 million, or 8%, for the six months ended March 31, 2009.

Total digital revenues increased by $38 million, or 12%, to $344 million for the six months ended March 31, 2009 from $306 million for the six months ended March 31, 2008. Total digital revenues represented 22% and 17% of consolidated revenues for the

 

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six months ended March 31, 2009 and 2008, respectively. Total digital revenues for the six months ended March 31, 2009 were comprised of U.S. revenues of $225 million, or 65% of total digital revenues, and international revenues of $119 million, or 35% of total digital revenues. Total digital revenues for the six months ended March 31, 2008 were comprised of U.S. revenues of $201 million, or 66% of total digital revenues, and international revenues of $105 million, or 34% of total digital revenues. Excluding the unfavorable impact of foreign currency exchange rates, total digital sales increased by $51 million, or 17%, for the six months ended March 31, 2009.

Recorded Music revenues decreased by $216 million, or 14%, to $1,286 million for the six months ended March 31, 2009 from $1,502 million for the six months ended March 31, 2008. The net decrease in physical and other revenues of $261 million was a result of a back-end weighted release schedule in the current year as well as the ongoing transition in the recorded music industry characterized by a shift in consumption patterns from sales of physical products to new forms of digital music. Additionally, the weak global economy and retail environment continued to have an impact on our results. In addition to being mitigated by increased expanded-rights revenues, the decrease in sales of physical products and other revenues was also partially offset by an increase in digital revenues of $35 million. The increase in digital revenues was driven by global growth of downloads. Digital revenues were impacted by the timing of our release schedule, the timing and success of new product introductions and continued worldwide economic pressures. As digital revenues become a greater percentage of overall revenues, fluctuations in digital revenues between periods is becoming increasingly driven by the timing of releases. Licensing revenues increased $10 million versus the prior-year quarter. Excluding the unfavorable impact of foreign currency exchange rates, total Recorded Music revenues decreased $132 million, or 9%, for the six months ended March 31, 2009.

Music Publishing revenues decreased by $30 million, or 10%, to $269 million for the six months ended March 31, 2009 from $299 million for the six months ended March 31, 2008. The decrease was due primarily to a decrease in mechanical revenues as a result of the continued decline in physical sales in the overall recorded music industry, partially offset by the increases in digital and synchronization revenues. Excluding the unfavorable impact of foreign currency exchange rates, total Music Publishing revenues decreased $6 million, or 2%, for the six months ended March 31, 2009.

This excerpt taken from the WMG 8-K filed Aug 4, 2005.

of total company revenues

 

NEW YORK, August 4, 2005—Warner Music Group Corp. (NYSE: WMG) today announced its third quarter financial results for the three-month period ended June 30, 2005. Reported net loss was $179 million or $(1.41) in earnings per share. Excluding $135 million in non-recurring after-tax expenses and $9 million in FAS 123 expenses, adjusted net loss was $35 million, or $(0.27) per share for the quarter. These non-recurring charges described below relate to specific IPO-related one-time events and do not reflect on-going operations of the business.

 

    Warner Music Group Corp. revenues grew 2% to $742 million compared to the same quarter in 2004, with both Recorded Music and Music Publishing contributing to growth.

 

    Digital revenue of $44 million or 6% of total revenue grew by 26% from the second quarter and 76% from the first quarter of fiscal 2005.

 

    The reported operating loss was $92 million in the quarter. Adjusted for certain non-recurring charges related to the company’s initial public offering (IPO) and FAS 123 expenses, operating income rose 33% to $20 million, compared to $15 million for the same period last year.

 

    Operating income before depreciation and amortization (OIBDA) adjusted for certain IPO-related non-recurring charges and FAS 123 expenses was $79 million up 5% from $75 million for the comparable period last year.

 

    The company also reported a cash balance as of June 30, 2005 of $265 million and total long-term debt of $2.2 billion.

 

“Warner Music Group’s solid performance in the quarter reaffirms the strength of our strategic plan and the efficacy with which it is being executed by our outstanding management team. In the most advanced digital market place – the U.S. – we are encouraged to see digital gains outpacing the physical business,” said Edgar Bronfman, Jr., Warner Music Group’s Chairman and CEO. “The industry continues to be faced with complex and significant challenges including piracy and a quickly evolving distribution landscape. However, at WMG, we are transforming these challenges into opportunities by continuing to make smart investments in A&R, managing our costs,


improving our margins and working closely with our partners in the technology space to provide innovative music offerings to consumers.”

 

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