WARNER MUSIC SALES UP BUT LOSS GROWS.Byline: Evan Pondel Staff Writer Warner Music Group Warner Music Group (WMG) is one of the four major record labels. Warner Music Group also has a publishing arm, Warner/Chappell Music, which dates back to 1929, when Jack Warner, president of Warner Bros. Pictures Inc. reported Thursday that its third-quarter loss worsened despite better-than-expected sales from DVDs and digital music. The world's fourth-largest music distributor reported a net loss of $179 million, or $1.41 per share, compared with a loss of $91 million, or 85 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , in the same period a year ago. More than $100 million of the loss is related to expenses from Warner's initial public offering in May, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. officials for the New York-based record label. At the same time, Warner saw third-quarter revenue increase to $742 million, up 2 percent. Analysts' estimates on third-quarter sales came in at about $680 million. Strong sellers included albums from Mike Jones, Michael Buble, Green Day and Rob Thomas Rob Thomas might refer to:
``We view these results as impressive given the overall decline in industry physical sales,'' Michael Savner, analyst with Banc of America Securities, said in a note. ``The solid results could help somewhat alleviate concerns that management has been starving operations.'' Sales of digital music certainly helped Warner's third-quarter performance. The company generated about $44 million in digital revenue, with 10 million ringtones sold during the quarter. Warner highlighted the importance of its urban base, which accounted for two-thirds of the ringtones sold in the three-month period ended June 30. ``We are encouraged to see digital gains outpacing the physical business,'' Edgar Bronfman Two persons are named Edgar Bronfman (father and son). They are the son and grandson of Seagram founder Samuel Bronfman:
Analysts remain confident that Warner will adapt to new technologies. ``We believe the company can successfully sell its valuable music content in new formats, new distribution channels and on new platforms,'' Anthony Noto, analyst with Goldman, Sachs & Co., said in a note. Shares of Warner Music rose $1.06, or 6.7 percent, to close at $16.79 Thursday on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Evan Pondel, (818) 713-3662 evan.pondel(at)dailynews.com CAPTION(S): photo Photo: (color) Green Day, above, and played a role in strong album sales for the Warner Music Group in its third quarter. |
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