In a report to shareholders this morning, Warner Music Group revealed that in the quarter ending June 30th, 2009, total revenue decreased 9.3% and operating income from continuing operations declined 51%. Total losses from continuing operations swelled to $37 million from $9 in the prior year quarter.
WMG improved its financial position during the quarter with a $1.1 billion offering of secured notes which the company used to pay off previous loans. But the new new notes carry a hefty 9.5% interest rate and come due in just 7 years
This morning's SEC filing showed:
* Total revenue of $769 million decreased 9.3 % from the prior year quarter.
* Digital revenue was $175 million or 23% of total revenue in the quarter up just 1% from the second quarter and up 5%f rom $166 million in the prior year quarter.
* Operating income from continuing operations declined 51% to $25 million compared to $51 million in the prior year quarter.
* Operating income before depreciation and amortization (OIBDA) fell 22% to $90 million from $116 million in the prior year quarter.
* Loss from continuing operations was $37 million or $.25 per diluted share compared to a loss from continuing operations of $9 million or $.06 per diluted share in the prior year quarter.
* Interest expense this quarter included $18 million or $.12 per diluted share of previously unamortized deferred financing fees related to the company's senior secured credit facility. These fees were written off in the current quarter when the company repaid the credit facility in full in connection with its senior secured bond
http://www.allaboutjazz.com/php/news.php?id=40622
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This situation may be due to the proliferation of free music downloaded from peer-to-peer groups. Still, despite decrease, they may still be making money otherwise, record companies are bound to stop producing records!
Seems to be, that is not the case ;)
Saturday, August 8, 2009
Friday, August 7, 2009
Latest Music News from Pop Idols Beyonce and Lady Gaga
Beyonce and Lady GaGa lead MTV Video Music Award nominations
The annual MTV Video Music Award nominations were announced yesterday, and Beyonce and Lady Gaga led the pack with nine each.
Their thank-you speeches, however, were ridiculous in their different ways. "I've been blessed to have Single Ladies become a video people really connected with," wittered Beyonce.
"It's beautiful to feel you touch people." And Gaga gave us this: "We believe in the immensity and the promise of showbiz and will continue to give it mouth-tomouth till its vomiting return."
No, we don't know either.
http://www.mirror.co.uk/celebs/3am/2009/08/06/be-yawnce-and-yes-gaga-115875-21574802/
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We keep our fingers crossed hoping to see our pop idols win the MTV Music Video Awards!
Good luck!
The annual MTV Video Music Award nominations were announced yesterday, and Beyonce and Lady Gaga led the pack with nine each.
Their thank-you speeches, however, were ridiculous in their different ways. "I've been blessed to have Single Ladies become a video people really connected with," wittered Beyonce.
"It's beautiful to feel you touch people." And Gaga gave us this: "We believe in the immensity and the promise of showbiz and will continue to give it mouth-tomouth till its vomiting return."
No, we don't know either.
http://www.mirror.co.uk/celebs/3am/2009/08/06/be-yawnce-and-yes-gaga-115875-21574802/
==
We keep our fingers crossed hoping to see our pop idols win the MTV Music Video Awards!
Good luck!
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