Warner Music earnings drop because of lackluster CD sales
Warner Music Group says its quarterly profit fell 58 percent year over year to $5 million from $12 million. Were it not for a $12 million settlement from Bertelsmann related to Napster, Warner would have had a quarterly loss. Revenue rose 2 percent to $869 million. For the year, Warner had a net loss of $21 million versus a profit of $60 million last year. The company said that revenues from online and mobile sales have risen, but this has not offset losses from conventional sales. Warner is attempting to make new agreements with artists to get part of touring and merchandise revenue, but it doesn't help that one of its star performers, Madonna, is dropping Warner for Live Nation when her contract is up.