Warner Music Group (WMG) posted a less-than-stellar quarterly report card this morning, though declines were mostly modest.
For the three-month period ending June 30th, revenues dipped a mild 2 percent to $804 million from $822 million during the year-ago quarter. Net income losses moved to $17 million, or $0.12 per basic and diluted share, from $14 million, or $0.10 per basic and diluted share, last year. Meanwhile, digital revenues jumped 29 percent to $119 million, a total that now accounts for 15 percent of total sales.
Another bright spot came from the publishing group, which posted revenue gains of 5 percent to $157 million. Publishing improvements were largely powered by digital and synchronization revenues, according to the group.
On Wall Street, the soft report could produce downward momentum today, though broader market volatility makes the game difficult to predict. On Sunday, Citigroup analyst Jason Bazinet downgraded the stock to a sell rating, and advised investors to avoid a “falling knife.” Other analysts have also been bearish, especially alongside a recent 52-week low.
Story by news analyst Alexandra Osorio.