NEW YORK (Hypebot) – WMG's net profits fell to $5 million (3 cents a share) in the fourth fiscal quarter down from $12 million (8 cents a share) a year ago. Revenue rose 2% to $869 million from a year ago but declined 2% after factoring in the impact of the weak dollar. The label's digital music sales were up 25% to $130 million during the quarter but did not make up for the rapid decline in CD sales.
WMG stock is down nearly 70% since the start of the year as investors reacted negatively to larger than expected drops in CD sales. The stock remained flat in early trading Tuesday at about $7.15.
Yestderday, WMG announced that it had entered into a deal to manage and exploit the assets of the Frank Sinatra estate and family including music and film. Rumor has daughter Nancy Sinatra cutting a jazz flavored album that may be released by the new joint venture.