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.