WMG Q2

LEN’S LATEST LOSSES: Another rough quarter at WMG, still suffering from a light release schedule whose root cause dates back to the Lyor Cohen regime, as well as slipping physical sales. Revenue declined 3% on a constant-currency basis, but excluding the July 1, 2013, acquisition of Parlophone, revenue declined 13.9% (or 13.4% in constant currency). Net loss was $59m versus net income of $4m in the prior-year fiscal Q2. As of 3/31, the company reported a cash balance of $149 million, total long-term debt of $2.869 billion and net debt (total long-term debt, including the current portion, minus cash) of $2.720 billion. Stated CEO Stephen Cooper, attempting to put a smiley face on the situation, “We have begun to see the strength in our release schedule for the remainder of the fiscal year. Through our A&R, marketing and promotional efforts, we continue to discover and develop new artists and further the careers of established artists.” (5/8a)