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.
When it officially releases its results, WMG expects to post a net loss. Due to the ranges involved in its estimates, it would be confusing or misleading to investors if it attempted to reconcile net lost to estimated OIBDA and EBITDA at this point in time, the company said.
Because of its publicly traded bonds, WMG has to file its 10-k report with the Securities And Exchange Commission within 60 days after its year-ends, but it generally announces the results in an abbreviated version in a press release before the filing date.
For the nine-month period ended June 30, WMG posted a net loss of $94 million of revenues of $2.06 billion. With its revenue expectations for the fourth quarter, it should post annual sales of 2.78 billion to $2.8 billion this year, down from the $2.87 billion in its prior fiscal year.
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