Warner Music Group Corp. on Friday (May 5) posted a quarterly loss, though domestic sales were strong and digital revenues rose substantially.

Warner Music Group Corp. on Friday (May 5) posted a quarterly loss, though domestic sales were strong and digital revenues rose substantially.

The company said it had a net loss of $7 million, or 5 cents a share, in the second quarter, versus a net profit of $4 million a year earlier.

On a diluted basis, the company posted a year-earlier loss of 28 cents a share, despite the bottom-line profit, due to unrealized gains on warrants issued to former parent Time Warner Inc. that were recognized in net income.

Revenue rose to $796 million from $767 million a year earlier. In the fast-growing digital segment, the company posted revenue of $90 million, nearly triple a year earlier and representing 11% of quarterly revenue.

Analysts polled by Reuters Estimates on average expected a net loss of 15 cents on revenue of $771.8 million.

On Wednesday EMI Group said Warner Music rejected a $28.50 per share, or $4.2 billion, takeover approach.

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