Warner Music-Why I’m Mixed

As you probably know, Warner Music reported another bad quarter this morning. Even though part of the decline was due to tough comparisons, a revenue-down-14% and income-down-75% way below expectations type of quarter. However, they were the only major music company to gain market share over the past year- a sign that the company is doing better than the industry. There were two other bright spots a) Japan–sales up 70% YoY and b) digital, up 45% YoY to 11% of sales.

I don’t see much happening with this company untill 3Q- when we know for sure about whether or not a merger with EMI is happening. Also the company stated that its a back-end loaded year in terms of releases.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: