Posted May 5, 200619 yr Warner Music grows revenues Source: Music Week Releases from artists including James Blunt, Madonna and Sean Paul helped Warner Music to grow revenues by 4% in the first quarter of 2006. The company posted total revenue of $796m (£430m) for the three months to March 31, compared to $767m (£415) in 2005. In addition, digital revenue at the company grew 157% to $90m (£49m) and now accounts for 11% of total revenue. The company's recorded music business increased revenue 9% to $676m (£365m), fuelled by US sales, which increased 22%. International revenue grew 4%, on the back of strong sales in the UK, Italy and the Asia / Pacific region. Despite this, the company reported a net loss of $7m (£3.8m) for the period, compared to a profit of $4m (£2.2m) for the same period of 2005, after its music publishing business underperformed. Music publishing revenue fell 16% to $129m (£70m) compared to 2005, as mechanical and synch revenues shrank by 12% and 9% respectively. Warner Music Group chairman and CEO Edgar Bronfman Jr says, "One year since out IPO, Warner Music has grown revenue, outperforming the market and gaining significant margin and market share. Through its strategy for profitable growth, this team has led the industry in the digital space, enhanced its competitiveness in the independent arena and gained share in the highest growth market segments." The results come amid speculation that EMI will renew its bid for Warner after its US-based rival rejected a $4.23bn (£2.35bn) cash-and-shares offer.
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