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11 May 2007, 18:46

Warner reports a net loss of $27 million

Warner reported its second quarter financial results this week. The label had a “net loss of $27 million, or 19 cents a share, compared with a loss of $7 million, or 5 cents a share, a year earlier,» according to Reuters.

This news follows the announcement that Warner Music Group was about to lay off 400 of its staff.

Among the reasons for the revenue decline the label marks out piracy, “changing consumption patterns in the shift from physical sales to new forms of digital music".

Nevertheless, Warner expects the situation to improve when the company implements its restructuring plan and boosts digital distribution of its music. “…we'll start to see benefits of that over a couple quarters after that, so certainly early fiscal 2008,” said their statement.


Read more:
Warner Music posts wider loss, Reuters

Comments 5

1. by Nightfly, 13 May 2007, 03:20

"implements it's restructuring plan" which means firing 400 hard working employees with familys...How many executives were fired for this
"restructuring"? there is no mention..3 top Execs could have covered almost that entire 400's payroll..Their greed has led to their decline and unless they give the masses what they want "quality music at a fair price"..this greed will lead to their demise.At this point their customers nor their share holder can trust them, unless they show a bold new move for change..

2. by aikanae, 14 June 2007, 02:07

it'll be interesting to see how many of those 400 jobs were shipped offshore or if they are rehired under the immigration worker visa congress wants to push through. I bet they will hire more.

If Warner is not willing to adjust to consumer demands, and think they can strong arm people instead, they should shut their doors already.

Consumers are not responsible for a business model of only a handful of musical acts, aimed at teenagers, to produce the bulk of their revenue. Talent can't rise to the top with their business model. They offer only packaging and p.r.

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