Warner Music Group Corp., home to recording artists such as Red Hot Chili Peppers, Gnarls Barkley and Green Day, said Friday it swung to a profit in the fourth-quarter, bolstered by a hefty settlement benefit. But its results fell short of Wall Street's expectations, and its shares fell more than 2 percent.
The New York-based recording company said net income totaled $12 million, or 8 cents per share, for the three months ended Sept. 30 compared with a loss of $30 million, or 21 cents per share, a year ago. Excluding restructuring costs and a copyright infringement settlement of $13 million with the operators of the Kazaa online file-sharing service, the loss totaled a penny per share.
Warner saw revenue fall 6 percent during the quarter to $854 million from $905 million last year.
Analysts surveyed by Thomson Financial expected a break-even performance in earnings per share on revenue of $893.9 million.
The company said the results for the quarter were hampered by ongoing challenges in the industry and tough comparisons to the year-ago period, during which the company had a stronger slate of album releases by James Blunt, Sean Paul and others.
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