Warner Music (WMG) reports a smaller loss

| About: Warner Music (WMG)

WMG Acquisition Corp., a wholloy owned subsidiary of Warner Music Group (ticker: WMG) reported results on May 16, 2005 for the fiscal seond quarter 2005, its first as a public company.  Here are some details:

Results 1Q05 vs. 1Q04:

  • Revenue: $767.0M vs. $735.0M (+4%)
  • OIBDA: $88.0M vs. $48.0M (+83%)
  • OIBDA margin: 11.5% vs. 6.5% (+500bps)
  • Operating income: $27.0M vs. $(21.0M)
  • Operating margin: 3.5% vs. -2.9% (+640bps)
  • Net Income: $(18.0M) vs. $(45.0M)
  • Net margin: -2.3% vs. -6.1% (+380bps)

Recorded Music 1Q05 vs. 1Q04:

  • Revenue: $621.0M vs. $592.0M (+5%)
  • OIBDA: $72.0M vs. $21.0M (+243%)
  • OIBDA margin: 9.4% vs. 2.9% (+650bps)
  • Operating income: $30.0M vs. $(23.0M)
  • Operating margin: 3.9% vs. -3.1% (+700bps)

Music Publishing 1Q05 vs. 1Q04:

  • Revenue: $154.0M vs. $149.0M (+3%)
  • OIBDA: $47.0M vs. $45.0M (+4%)
  • OIBDA margin: 6.1% vs. 6.1% (0bps)
  • Operating income: $32.0M vs. $24.0M (+33%)
  • Operating margin: 4.2% vs. 3.3% (+90bps)

Quick comments:

  • Digital revenues represented grew to $35 million from $25 million in the fiscal first quarter of 2005
  • SG&A expenses fell to 38.2% from 43.0% in the year earlier period as a result of restructuring initiatives
  • Acts that contributed to Recorded Music revenues: Green Day, Michael Buble, T.I., and Big & Rich