Warner Music Group profits tumble 58% in Q4

Warner Music Group announced its fourth-quarter profits declined 58 percent, citing costs to cut jobs forced by a $9 million drop in compact disc sales. Net income fell to $5 million from $12 million a year earlier, while revenue for the quarter rose 1.8 percent to $869 million. WMG's digital revenue totaled $130 million, or 15 percent of overall Q4 revenue, up nine percent sequentially from $119 million in the third quarter and up 25 percent from $104 million a year ago--full-year 2007 digital revenue rose 30 percent to $460 million, or 14 percent of total revenue.

During a conference call Thursday morning, WMG CFO Michael Fleisher said that in the U.S. market, online music sales remain greater than mobile sales, while internationally, sales are split roughly 50/50 between the digital platforms. "Mobile is weaker than we'd like to see, as ringtones as have lost their luster," Fleisher said. 

For more on WMG's Q4 results:
- read this release

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