Warner Music Group Expects Improved Revenues in Q4

By Ed Christman, First Posted on Billboard, October 16, 2012

When the Warner Music Group (WMG) reports its financials for the three-month period ended Sept. 30, the company expects revenue to total $721 million to $741 million, an improvement over the $719 million reported in the corresponding period for the prior year. 

Of total revenue for the quarter, recorded music is expected to generate $598 million to $614 million, as compared with $583 million in the prior-year period. Publishing is expected to report $130 million to $134 million, down from the $141 million reported in 2011’s final quarter. 

WMG expects to generate $100 million to $110 million in operating income before interest, taxes, depreciation and amortization — an improvement over the $41 million reported in the fourth quarter of fiscal 2011. 

For the full year, WMG expects its earnings before interest, taxes depreciation and amortization to range from $460 million to $470 million. The company also said it had $300 million in cash on hand at years-end, before it made a $54 million interest payment on Oct. 1. 

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