NEW YORK (VIP-NEWS) — Warner Music Group released second quarter earnings results that show slightly increased revenues but widening losses.
Revenues grew 2% to $800 million, with digital revenues up 48% to $164 million, compared to the same quarter last year. Digital now represents 21% of WMG's total revenues.
Those gains were not enough to offset falling CD sales, as the company's fiscal second quarter results revealed a net loss of $37 million or 25 cents a share, compared with a loss of $27 million or 19 cents a year ago. The losses were greater than analyst's estimates of 12-cents a share, but revenues exceeded expectations.
On the conference call discussing the results, WMG chief financial officer Michael Fleisher pointed out that 65% of digital sales take place in the U.S. compared to 35% internationally. Mobile revenues, which make up 30% of all digital revenues compared to 70% of greater online revenues, are flattening as ringtones sales fall.
Responding to the challenging economic situation, WMG is halting dividend payouts, which had the immediate impact of sending the company's stock down 22%,according to Billboard