Warner Music posted a quarterly loss on Friday, but don't you go thinking that's bad news, oh no. The figures were, in fact, better than many expected and, with a strong showing in the important digital sector, were generally well received by the investment community.
The US based major record company said it had a net loss of $7 million in the second quarter, which compares to a $4 million profit in the same quarter last year. However, those topline figures are slightly misleading because of factors I really don't understand relating to the acquisition of Warner Music by its current owners off former parent company Time Warner - factors which mean that in real terms the company made a substantial loss in the same period last year - hence the positive response to the new figures.
More importantly, revenues were up to $796 million from $767 million in the same quarter last year, plus the digital segment of the company, seen by many as key to the record label's future fortune, posted revenues of $90 million, nearly triple that of a year earlier and representing 11% of total quarterly revenue.
The consensus seems to be that the latest figures should strengthen the hand of Warner Music's owners in any takeover negotiations with EMI.