WMG EARNINGS: THE HOLE TRUTH

Warner Music Group reported a continuing, though slowing, decline for its fiscal Q3, ending 6/30. The loss was deepened by fluctuations in exchange rates. Here’s the skinny, as summarized in the report:

• Total revenue declined 10% or 1% on a constant-currency basis
• Recorded-music revenue declined 10% or 1% on a constant-currency basis
• Digital revenue declined 3% or increased 4% on a constant-currency basis
• OIBDA was $100 million versus $66 million in the prior-year quarter
• Net loss was $43 million versus $184 million in the prior-year quarter

"I’m pleased with our relative performance this quarter, given that Q3 was our strongest quarter in fiscal 2014," said CEO Stephen Cooper. “Our successes this quarter are due to ongoing growth in streaming revenue, a strong flow of outstanding music from our artists and songwriters, and first-class execution by our operators around the world.”

Added EVP/COO Eric Levin, “Currency factored prominently in our results. It is encouraging that, given the strength of the prior-year quarter, total revenue was essentially flat year over year on a constant-currency basis. I’m proud of our OIBDA and margin performance. We will continue to take a balanced, global approach to delivering revenue, free cash flow and OIBDA growth.”