Warner Posts Revenue Drop As Focus Remains On "Cost Management"

The Warner Music Group, who last year missed out on buying EMI despite being favourites on more than one occasion during the bidding process, have posted a drop in revenue, but a reduction in net loss, for the recent quarter ending 31 March. The revenue drop has been blamed, in part, on a thin release schedule.

Revenue dropped 8 percent, with sales at $628 million, down from $684 million. 37 percent of that was from digital sales, a figure up from 32 percent during the same quarter last year.

Stephen Cooper, Warner Music Group's CEO, said, "With growing digital and non-traditional revenue partially offsetting the impact of a light release schedule as compared to the prior-year quarter, this quarter's results show the benefits of the company's transformation. We remain optimistic about the company's performance over the course of the fiscal year as we continue to execute on our long-term strategy."

Warner was bought by Russian tycoon Len Blavatnik's Access Industries last year. Despite it now being a private company, the LA Times points out that their $2.2 billion in publicly traded debt means they still post some of their financial results.

With this release Warner have stressed that their focus remains on "cost management".

Brian Roberts, Warner's Executive Vice President and CFO, said, "Through ongoing focus on cost management, we were able to increase OIBDA [operating income before depreciation and amortisation], expand OIBDA margins and generate significant free cash flow."