Digital shift upends Warner Music in Q2
By: Alex Veiga
The shift in demand from CDs to downloads is taking its toll on Warner Music Group, which reported a loss of US$37 million in the second quarter.
Warner Music, whose artists include R.E.M., Madonna and Green Day, said Thursday, 8 May 2008, that higher costs and a shift to digital music resulted in a wider second-quarter loss, and it suspended dividends.
Shares tumbled more than 20%, or $1.87, to $7.18 in morning trading.
For the period ended 31 March, the New York-based recording company reported a loss of $37 million, or 25 cents per share, compared with a loss of $27 million, or 19 cents per share, a year earlier. Losses from continuing operations totaled 23 cents per share in the latest period.
Revenue grew 2% to $800 from $784 million a year earlier.
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