Warner's digital sales jump 28%

Tue Nov 25 2008, 17:46 PM

Warner Music's digital revenues were up 28% in the last quarter, driven by growth in online downloads and, to a lesser extent, mobile music sales. The label reports digital revenue of USD167m for the three months to September 30, up from USD131m in the same period last year. Around 20% of Warner Music's total revenue came from digital sales last quarter.

Strong digital growth failed to offset a decline in traditional sales. Overall, Warner Music reports a 1% year-on-year decrease in revenue to USD854m, citing the transition to new forms of digital consumption and the impact of piracy. In particular, US sales declined 5.4%, while only Japan and some European countries saw a sales increase on a constant currency basis. Major sellers in the quarter included titles from Metallica, Kid Rock and T.I., the firm says.

However, net profit rose USD1m year-on-year to USD6m, or USD0.04 a share. For the 12 months to the end of September, Warner reports a loss of USD56m, compared with a loss of USD21m in the previous financial year. Revenue grew 3% to USD3.5bn.

"Warner had a strong year, outperforming the industry and sustaining revenue over the fiscal year, despite the challenging global recorded music [climate] and broader financial environments," says Warner chairman and CEO Edgar Bronfman Jr.