Profits and Revenues Up For Warner Music

nzherald: Yesterday, Warner Music Group (which raised $554 million in its initial public offering on May 10) issued its first quarterly report as a public company, announcing net income of $4 million in the second quarter, contrasted with a loss of $48 million during the same period last year. Revenue also rose 4.4% to $767 million with both Recorded Music (up 5 percent, to $621 million) and Music Publishing contributing to its growth. The company stated that a weak dollar and improved sales of digital music helped narrow its second-quarter loss. Revenues were bolstered from an $18 million increase in favorable exchange rates as well as improved digital revenues of $35 million (4.6% of total revenue) - which were actually greater than the $32 million achieved during the full fiscal year 2004 despite a $30 million decline in worldwide CD sales...However, Warner's shares fell nearly 3 per cent on overall weakness in the music industry - down 48 cents at $16.47 in afternoon trade on the New York Stock Exchange trade. In addition, Warner's distributor of independent labels showed an improvement for the quarter. Full financial details for the quarter can be found in the company's current Form 10-Q, filed with the SEC.