Warner Music narrows loss in 3rd-qtr as it shifts to digital music

August 7, 2008 12:15:48 PM PDT
Warner Music Group has beaten Wall Street expectations with narrowed losses in the third quarter, thanks to digital sales. The company with Katy Perry and Madonna among its artists reported its net loss narrowed to 9 million dollars, or 6 cents per share, from 17 million dollars, or 12 cents a share, in the same period last year. That beat analyst expectations of a loss of 18 cents per share.

Online sales continued to rise as the company sought to shift its revenue mix away from the declining CD market and into higher-margin downloads and into deals with artists that capture new revenue streams.

Digital revenue grew 39 percent to 166 million dollars, accounting for 20 percent of Warner Music's total revenue. But the company acknowledges that rising online sales have yet to overcome the decline in CD sales.