How long can this go on – before a sale, merger, or some other ‘event’ takes place?
Just this morning, Warner Music Group (WMG) revealed its 8th-straight quarterly loss, with double-digital revenue declines during the fourth quarter. Net losses nearly tripled on the quarter, all part of a devastating decline.
As usual, digital gained, but this is the same old riddle. Overall, fourth-quarter revenues slipped 13 percent to $752 million, and full-year revenues dropped 7 percent to $2.98 billion. Meanwhile, digital gained 7 percent on the quarter to $197 million, and now accounts for 26 percent of the broader revenue total. See the problem?
Publishing also took a hit. Overall, publishing revenues dropped 13 percent to $142 million.
Broader losses were impressive. During the fourth quarter, losses reached $46 million, from ‘just’ $18 million during the previous quarter. A large part of those losses were attributable to severance expenses.