Warner Music Group swung to a net loss of $16 million in the third quarter after reporting net income of $141 million a year earlier.
The company attributed the net loss to about $9 million in expenses related to the departure of the company’s CFO Bryan Castellani, an increase in restructuring and impairment charges, an increase in amortization expenses, the impact of exchange rates on the company’s Euro-dominated debt resulting in a $70 million loss and unrealized losses on hedging activity of $8 million in the quarter, among other items.
As a result of some of these factors, operating income also decreased to $169 million from $207 million in the year-earlier period. Revenue increased to $1.7 billion from $1.5 billion, driven by an increase in streaming revenue.
Recorded music revenue hit $1.3 billion, up from $1.2 billion, which includes $16 million of digital revenue from the settlement of copyright infringement cases.
“This quarter we delivered massive chart hits, breakthrough stars, strong revenue growth, and market share gains…all of which show our strategy is working,” said Robert Kyncl, CEO, Warner Music Group. “As we continue to evolve our company, we’re focusing on the artists, songwriters, and markets with the greatest potential, while expanding our iconic catalog, and building the dynamic teams and tools that will help our talent have the biggest global impact.”
More to come.