RouteNote Blog » warner music group http://routenote.com/blog The World of Music Licensing and Distribution Thu, 09 Feb 2012 21:52:08 +0000 en hourly 1 http://wordpress.org/?v=3.1.2 Warner Music Group Looking for a Buyer http://routenote.com/blog/warner-music-group-looking-for-a-buyer/ http://routenote.com/blog/warner-music-group-looking-for-a-buyer/#comments Fri, 21 Jan 2011 15:02:40 +0000 Finchy http://routenote.com/blog/?p=6106 Warner Music Group are preparing for a sale. It has been reported that Warner has hired Goldman Sachs to seek out buyers.

Warner Music is home to such artists as Green Day, Faith Hill, and the Red Hot Chili Peppers. According to the Times’ story, Warner’s private-equity investors want Warner to either place bet big on music by buying EMI, the smallest of the four major labels or “cash out.”

The major labels are in rapid decline and they dont seem to be adapting as well as they should be. Sony is closing manufacturing plants, EMI is in big trouble financially and now Warner are looking to exit.

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]]> http://routenote.com/blog/warner-music-group-looking-for-a-buyer/feed/ 2 Warner Music Financials and Views on iTunes http://routenote.com/blog/warner-music-financials-and-views-on-itunes/ http://routenote.com/blog/warner-music-financials-and-views-on-itunes/#comments Sun, 09 May 2010 14:40:09 +0000 Finchy http://routenote.com/blog/?p=3414 Warner Music Group have announced their numbers for the first quarter of 2010. Warner Music Group cut its loss to $25 million compared to $68 million a year ago. Recorded music sales were down 5.5% year-on-year to $534 million, but global digital sales were up 11.2% to $189 million, with the UK singled out as a particularly strong market.

Digital sales now account for 30.1% of WMG’s total income. CEO Edgar Bronfman praised Apple – “No-one’s gotten very rich betting against Steve Jobs – and I don’t want to be the first to do it” – although he refused to speculate on whether it’s about to launch a subscription model for iTunes.

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]]> http://routenote.com/blog/warner-music-financials-and-views-on-itunes/feed/ 0 Warner Signs Content Deal With Hulu http://routenote.com/blog/warner-signs-content-deal-with-hulu/ http://routenote.com/blog/warner-signs-content-deal-with-hulu/#comments Thu, 14 Jan 2010 17:28:02 +0000 Dashiel http://routenote.com/blog/?p=2577 warner music group logohulu-logoNot satisfied with signing up it’s music and video content to the most successful US video streaming website of 2009, Vevo, WMG has done a deal with internet TV streaming site Hulu for access to the same content.

The agreement brings an artist-focused online video experience that features music videos, artist interviews, live concerts and rare behind the scenes footage from WMG’s world-renowned artists and labels including Atlantic Records, Rhino Records and Warner Bros. Records.

This is a pretty agressive drive towards monetising WMG’s content online, and a sign the big 4 are beginning to adapt and respond to the loss of physical sales and the rise of file sharing, instead of just digging their heels in and waiting for the courts to prosecute a solution for them.

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]]> http://routenote.com/blog/warner-signs-content-deal-with-hulu/feed/ 0 WMG’s 10K Filing http://routenote.com/blog/wmgs-10k-filing/ http://routenote.com/blog/wmgs-10k-filing/#comments Tue, 01 Dec 2009 17:07:31 +0000 Dashiel http://routenote.com/blog/?p=2263 Warner Music Group just posted their Annual 10K with the SEC (click on the thumbnails to enlarge). Revenues are down, and the company has posted a -$77 million dollar loss for the year: double what they lost last year (-$35 million), but better than they did in ’05 (-$110 million). They’ve managed to shave 5% off their administrative costs, and there’s a marked increase in their digital revenues, up from $599MM to $656MM, which nevertheless fails to cover the drop in lost physical sales. Really it’s the same story we’ve been hearing from the majors for the last few years – the focus is gradually shifting across to digital music, and physical revenues are dwindling away, meaning that the big 4 are making less money and having to downsize their infrastructure. I’m absolutely convinced that after a period of shrinking like this, the big guys will return to profitability, and the quicker they shift their focus across to maximising digital and live revenues, the quicker this will happen.

wmg top line

WMG 10K revenue

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]]> http://routenote.com/blog/wmgs-10k-filing/feed/ 0 Warner Music Group Announces Heavy Losses for 2nd Quarter 2009 http://routenote.com/blog/warner-music-group-announces-heavy-losses-for-2nd-quarter-2009/ http://routenote.com/blog/warner-music-group-announces-heavy-losses-for-2nd-quarter-2009/#comments Thu, 06 Aug 2009 14:34:43 +0000 Finchy http://routenote.com/blog/?p=966 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 offering.

Read the full filing here.

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]]> http://routenote.com/blog/warner-music-group-announces-heavy-losses-for-2nd-quarter-2009/feed/ 0 Warner Music Group Reports Higher Profits on Lower Sales for http://routenote.com/blog/warner-music-group-reports-higher-profits-on-lower-sales-for/ http://routenote.com/blog/warner-music-group-reports-higher-profits-on-lower-sales-for/#comments Tue, 25 Nov 2008 17:25:35 +0000 Finchy http://routenote.com/blog/?p=222

Even though there has been a big decline in CD sales, which is expect to continue, Warner Music Group managed to actually meet analysts’ expectations and remain strong.

  • Wmg 2008 fiscal year revenue grew 3% to $3,491M, and declined 2% on a constant-currency basis. 34 revenue totaled $854M a decrease of 1% from the prior-year quarter or 5% on a constant-currency basis.
  • 2008 digital revenue rose 39% to $639M or 18% of total. Q4 digital revenue was $167M or 20% of total revenue up from $166M in the third quarter of fiscal ’08 and up 28% from the prior-year quarter. Full-year 2008 digital revenue rose 39% to $639M or 18% of total revenue.
  • Operating income from continuing operations declined 20% to $66 million.. in the quarter compared to $83 million in the prior-year quarter. Prior quarters had benefited from a $17M legal settlement and been dragged down by whopping $9M in expenses during the failed aquisition of EMI.
  • Operating income before depreciation and amortization from continuing operations fell 8%. (more)

WMG’s saw revenue fall 3.7% with weakness in the U.S. offset by sales in Japan, France and Italy. Major sellers included Metallica, Kid Rock and Mariya Takeuchi.

Sources: Billboard, MusicAlly, Hypebot

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