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NEW YORK (Reuters) -
Warner Music Group Corp. Thursday posted a wider quarterly loss due to charges related to its initial public offering, but acts such as Rob Thomas, Green Day and Michael Buble boosted revenue.
Warner Music (up $1.07 to $16.80, Research) posted a fiscal third-quarter loss of $179 million, or $1.41 a share, compared with a year-earlier loss of $91 million, or 85 cents a share.
The quarter included a number of charges stemming from its IPO in May, including a $73 million fee to end a management contract related to the IPO.
Excluding one-time items, the company posted a loss of $35 million, or 27 cents a share. The average Wall Street forecast was for a loss of 49 cents a share, according to Reuters Estimates.
Revenue rose 2 percent, to $742 million from $726 million. The average Wall Street estimate was $721.3 million.
The quarter included a number of charges stemming from its IPO in May, including a $73 million fee to end a management contract related to the IPO.
"We are now seeing digital gains outpacing physical sales (in the United States)," said Warner Music chief executive Edgar Bronfman, noting that he sees similar opportunities internationally as online music sales gain traction.
Analysts have been questioning what impact digital sales will have on Warner Music and other music companies, and when such sales will offset the decline in sales of traditional CDs.
Digital revenue totaled $44 million, up 26 percent from the second quarter, and 6 percent of overall revenue.
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