Music recording company Warner Music Group Corp. said Thursday its quarterly profit fell 74% due to fewer albums released during the period and soft domestic and European sales.
Manhattan-based Warner earned $18 million, or 12 cents per share, in its fiscal first quarter ended Dec. 31, down from $69 million, or 46 cents per share, in the year-earlier period.
Revenue fell 11% to $928 million in the latest quarter.
Analysts polled by Thomson Financial expected a profit of 24 cents per share on revenue of $944.8 million.
The company said the market was challenging, especially for its recorded music business segment, and that it faced difficult year-over-year comparisons. Digital revenue grew 45% to $100 in the first quarter but slid 4% from $104 million in the fourth quarter of 2006.
Revenue for the company’s recorded music business decreased 13% to $800 million on softer domestic and European sales. The company said Asia Pacific sales were helped by strength in Japanese local repertoire.
Michael Fleisher, Warner Music Group’s chief financial officer, said 2007 results will be weighted to the back end of the year.
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