A continuing transformation of the music retail industry cut deeply into second quarter fiscal earnings at Warner Music Group Corp.

Warner Music reported a loss of $27 million (-27 cents per share), compared to a loss of $7 million (-5 cents per share) from the same period a year earlier. Wall Street analysts had expected a 9-cent loss, according to a poll conducted by Thomson Financial.

Revenues for the New York-based music label, which has substantial operations in Burbank, fell 2 percent to $784 million, better than analysts’ predictions of $738 million.

One bright spot: digital revenue increased 23 percent during the quarter to $111 million, comprising 14 percent of total sales.

Warner said it plans job cuts in positions related to CD sales, but the restructuring is not expected to bring major savings because the company plans to boost hiring in emerging areas such as digital music and video sales.

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Warner added that it expects a one-time restructuring charge of $65 million to $80 million by the end of the fiscal year.

Shares in Warner Music were flat at $17.30 in afternoon trading Tuesday on the New York Stock Exchange.