February 14, 2006

Profits were up 91% at Warner Music Group last quarter, just the latest in improved earnings among the major music groups. Revenue dropped to $1.04 billion from $1.09 billion but with the help of a big increase in digital revenues -- up 30% from the previous quarter (due in large part to the holiday season) and up almost 200% from a year ago -- net income rose 9% to $166 million.

Other main points:

• Sales of recorded music were down 2%.
• International revenue grew by 1.8% (excluding effects from change in exchange rate).
• Music publishing revenue was down 15% (only 4% on a constant-currency basis), and digital revenues from music publishing was 4% of total publishing revenues.
• Operating income was $144 million compared to $130 million for the same period last year.

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Posted by Glenn at 7:48 AM | | | Music Industry | Warner Music Group