Warner Music Group 2Q loss widens on increased expenses
Warner Music Group, whose artists include R.E.M., Green Day, Red Hot Chili Peppers, says higher costs and a shift to digital music led to a wider second-quarter loss, and that it would suspend its dividend in order to build cash reserves and lower debt.
New York-based Warner Music Group Inc. lost $37 million, or 25 cents per share, compared with a smaller year-ago loss of $27 million, or 19 cents. Losses from continuing operations total 23 cents per share in the latest period.
Sales gained 2 percent to $800 million from $784 million.
Analysts surveyed by Thomson Financial expected a loss of 12 cents per share on revenue of $779.7 million.
Recorded music sales edged up 0.6 percent, as retailers shifted inventory amid a slowing economy and demand for more digital music.
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AP Business Writer Michelle Chapman
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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