Thursday, August 06, 2009

Warners figures

Hypebot has got the details on Warners losses for the quarter, and the position isn't pretty:

Total revenue decreased 9.3% and operating income from continuing operations declined 51%. Total losses from continuing operations swelled to $37 million from $9 in the prior year quarter.

Twelve million dollars a month? It's hard to see how Warners could even manage to be spending that, much less losing it.

But don't worry, Warners have a cunning plan:
WMG improved its financial position during the quarter with a $1.1 billion offering of secured notes which the company used to pay off previous loans. But the new new notes carry a hefty 9.5% interest rate and come due in just 7 years

So it seems that Warners is adopting the survival tactics of a desperate single parent on a sink estate, and turning to a loan-sharkey solution. We give it three quarters until they're trying to flog off their telly down the pub.