Warner Music Group Corporation (WMG) saw its loss narrow to $4 million in the quarter ended compared with $23 million, a year ago. On an adjusted basis, net loss for the quarter was $2 million, when compared with $15 million in the last year period. Revenue during the quarter grew 12.13 percent to $841 million from $750 million in the previous year period. Total expenses were 93.46 percent of quarterly revenues, down from 95.07 percent for the same period last year. This has led to an improvement of 161 basis points in operating margin to 6.54 percent.
Operating income for the quarter was $55 million, compared with $37 million in the previous year period.
However, the adjusted operating income for the quarter stood at $56 million compared to $45 million in the prior year period.
"Weve had another excellent year, in which we posted strong financial results and outperformed the industry," said Steve Cooper, Warner Music Groups chief executive officer. "This fiscal year marked our highest total revenue in eight years and our highest OIBDA in a decade. Were creating great momentum by investing in a flow of fantastic new music, expanding our presence around the globe and embracing new business models early. Given our extraordinary roster of recording artists and songwriters and the strength of our operators around the world, were excited by the possibilities in 2017 and beyond."
Operating cash flow improves significantlyWarner Music Group Corporation has generated cash of $342 million from operating activities during the year, up 54.05 percent or $120 million, when compared with the last year. The company has spent $8 million cash to meet investing activities during the year as against cash outgo of $95 million in the last year.
The company has spent $216 million cash to carry out financing activities during the year as against cash outgo of $19 million in the last year period.
Cash and cash equivalents stood at $359 million as on Sep. 30, 2016, up 45.93 percent or $113 million from $246 million on Sep. 30, 2015.
Debt comes down
Warner Music Group Corporation has recorded a decline in total debt over the last one year. It stood at $2,812 million as on Sep. 30, 2016, down 6.08 percent or $182 million from $2,994 million on Sep. 30, 2015. Total debt was 52.37 percent of total assets as on Sep. 30, 2016, compared with 52.79 percent on Sep. 30, 2015. Debt to equity ratio was at 13.39 as on Sep. 30, 2016, up from 12.53 as on Sep. 30, 2015. Interest coverage ratio improved to 1.31 for the quarter from 0.82 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
