Warner Music Group said FQ1 2007 profits fell 74% on an 11% drop in revenues. EPS was $0.12 ($18 million), down from $0.46 ($69m) in Q1 2006, missing analyst estimates of $0.24-0.26. Revenues were $928m, down from $945. Warner said it faced "unusually difficult" year-over-year comparisons. Digital revenues represented 12% of total revenues. Recorded music revenues were down 13%, music publishing revenues were up 2%, while digital revenues grew 45%.
Sources: Press Release, MarketWatch
Commentary: Warner Music Group Earnings Conference Call Transcript (later today) • Media Companies Slow to Bridge the Digital Divide • Warner Music Discusses its "Digital Milestone" and the Future of Physical
Stocks/ETFs to watch: Warner Music Group Corp. (WMG). Competitors: Digital Music Group (DMGI), Image Entertainment Inc. (OTC:DISK), Sony Corp. (SNE)
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