Warner Music Group's Digital Revenues Increase 41 Percent

Revenues from online music stores, subscription services, ringtones, and webcasts netted Warner Music Group $141 million in the financial period ending December 31, 2007 – up 41 percent from last year's figure of $100 million (talk about some easy math).

In an indication that the tipping point where labels' gains on digital revenues offset physical sales losses may already have been reached, the label's overall revenue was up 7 percent, $928 million to $989 million.

And in an indication that label execs are still raking in serious coin, Warner CEO Edgar Bronfman, Jr. took home $3.4 million last year.

Here's a financial summary of that period from the announcement:

* Total revenue of $989 million increased 7% from $928 million in theprior-year quarter, and grew 1% on a constant-currency basis.

* Digital revenue was $141 million, or 14% of total revenue, up 9%
sequentially from $130 million in the fourth quarter of fiscal 2007 andup 41% from $100 million in the prior-year quarter.

* Operating income decreased 45% to $44 million from $80 million in theprior-year quarter. Operating income in the first quarter includes an$18 million impairment charge related to Bulldog Entertainment, anentertainment services company purchased in May 2007, a business wehave since exited.

* Operating income before depreciation and amortization (OIBDA) fell 8%
to $129 million from $140 million in the prior-year quarter.

* Net loss of $0.11 per diluted share, which reflects the previouslynoted $18 million or $0.12 per share impairment charge, declined fromnet income of $0.12 per diluted share in the prior-year quarter.