Nov 30, 2007 04:30 AM
Warner Music Group Corp., home to Green Day and Missy Elliott, right, said yesterday its fourth-quarter profit slipped 58 per cent amid a softer international market and a decline in CD sales, but results topped Wall Street estimates.
The New York-based company said earnings for the quarter ended Sept. 30 fell to $5 million (U.S.), or three cents per share, from $12 million, or eight cents per share, in the prior year.
Quarterly results included $9 million in restructuring and implementation expenses and a $12 million benefit for a settlement with Bertelsmann AG related to Napster. The prior-year period included a $13 million gain on a Kazaa online music sharing settlement.
Quarterly revenue climbed 2 per cent to $869 million from $854 million in the year-ago period. Analysts polled by Thomson Financial had expected net income of two cents per share on sales of $874.8 million.
Warner Music Group is one of many recording companies struggling amid an industry- wide, multiyear decline in CD sales. Warner Music has stepped up efforts to find new revenue, focusing on agreements with artists beyond music sales so it can take a cut of touring, merchandising and artist management.