Warner Music Group Corp. (NYSE: WMG) posted a wider fiscal second quarter loss on Tuesday, hurt by restructuring costs and soft music sales.
The firm reported a loss of $27 million, or 19 cents per share for the quarter. Last year during the same period, the company lost $7 million, or 5 cents per share.
Excluding one time costs, the firm posted a loss of 10 cents per share. Analysts, on average, had expected a loss of 9 cents per share, according to a poll by Thomson Financial.
The world's fourth largest music company said overall market challenges and a slide in music disc sales hurt its overall sales. It also said that its industry remains challenged by piracy and changing consumption patterns in the shift from physical sales to new forms of digital music.
The corporate home to artists like Madonna and Red Hot Chili Peppers is changing its business model to incorporate more digital revenue to take advantage of current market conditions.
Digital music sales rose 22 percent, to $105 million compared to a year ago. Online music sales were 16 percent of total music revenue.
Overall, revenue declined 2 percent to $784 million from $796 million.
By the end of its fiscal year it would incur restructuring charges of $65 million to $80 million as it cuts costs.
Shares of the firm fell by 5 cents, or 0.29 percent to $17.25 in mid-day trading on the New York Stock Exchange.