NEW YORK (WMG) - Warner
Music Group Corp. (NYSE: WMG) today announced its second quarter financial results for the three-month period ended March 31, 2005. Warner
Music Group Corp. reported net income of $4 million, a sizable improvement from last year's same period loss of $48 million. The company also reported a cash balance as of March 31, 2005, of $447 million, total long-term debt of $2.55 billion and net debt (total long-term debt minus cash) of $2.1 billion. Full financial details for the quarter can be found in the company's current Form 10-Q, filed today with the Securities and Exchange Commission.
Second quarter results for WMG Acquisition Corp., an indirect, wholly owned subsidiary of Warner
Music Group Corp., were previously reported on May 16, 2005. The most significant differences between Warner
Music Group Corp. and WMG Acquisition Corp. are the levels of cash and debt they hold and the related net interest expense. Warner
Music Group achieved the following results in its second quarter, which results are identical to the WMG Acquisition operating results previously reported:
- Revenues grew 4.4% to $767 million, with both Recorded
Music and
Music Publishing contributing to its growth.
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Digital revenues of $35 million (up from $25 million in the first quarter) or 4.6% of total revenue were a significant contributor, and were greater than the $32 million achieved during the full fiscal year 2004.
- Selling general and administrative expenses fell to 38.2% of revenues compared to 43% for the same period in 2004, reflecting benefits of restructuring initiatives.
- Operating income was $27 million, compared to an operating loss of $21 million for the same period last year.
- Operating income before depreciation and amortization (OIBDA) was $88 million up 83.3% from $48 million last year. Excluding FAS 123 charges of $7 million, total OIBDA amounted to $95 million up 97.9% from last year's comparable quarter.
This morning, management will be hosting a conference call to discuss the results at 10:00 A.M. EST on June 13, 2005. The call will be Web cast on www.wmg.com. About Warner
Music Group
Warner
Music Group, with its broad roster of new stars and legendary artists, is one of the world's major music companies. The company is home to a collection of some of the best-known record labels in the music industry including Atlantic, Bad Boy, Elektra, Lava, Maverick, Nonesuch, Reprise, Rhino, Sire, Warner Bros. and Word. Warner
Music International, a leading company in national and international repertoire operates through 37 affiliates and numerous licensees in more than 50 countries. Warner
Music Group also includes Warner/Chappell Music, a global music publisher, with a catalog of more than one million copyrights worldwide. For more information about Warner
Music Group, visit our corporate website at www.wmg.com.
