Although Warner Music Group yesterday reported a 2% drop in revenue in third-quarter earnings for fiscal year 2007 from the same quarter last year, numbers were generally up for its publishing division, Warner/Chappell Music.

Warner/Chappell's revenue increased by 5% (1% on a constant currency basis)
to $157 million from the prior-year quarter.

Operating income doubled from $9 million to $18 million. Excluding $1 million in expenses related to WMG's realignment initiatives and a $3 million benefit related to a settlement with Bertelsmann AG over that company's investment in the original Napster, quarterly operating income grew 78% to $16 million, with an operating margin of 10.2%.

Publishing operating income before depreciation and amortization (OIBDA) was $33 million, up 44% from $23 million. Adjusted to exclude the realignment expenses and the Bertelsmann settlement, publishing OIBDA rose 35% to $31
million for the quarter.

The company reported that the publisher's revenue benefits for the quarter ending June 30 were primarily linked to an improvement in digital and synchronization revenue. The company's digital revenue rose 40% to $8 million and represented 5% of total publishing revenue for the quarter.

The company reported that synch revenue increased 5%, performance revenue was flat, and mechanical revenue declined.