Warner Music Posts Big Loss

The company takes a ton of charges for its IPO.
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Warner Music's

(WMG) - Get Report

loss widened in the third quarter as the big music label took $135 million worth of charges related to its spring IPO.

For the quarter ended June 30, the New York company lost $179 million, or $1.41 a share. That compares with the year-ago loss of $91 million, or 85 cents a share. Revenue rose to $742 million from $726 million a year ago.

Excluding latest-quarter charges, the loss was $35 million, or 27 cents a share. Warner said IPO-related items included a $73 million fee to terminate a management contract, $1 million of management fees, certain cash payments to employees totaling $29 million related to the issuance of stock awards below fair market value and payment of an IPO bonus to employees, and $35 million resulting from the payment of redemption premiums and other charges in connection with the redemption of debt.

Digital revenue rose 26% sequentially and 76% from a year ago to $44 million, or 6% of total revenue. Recorded Music revenue expanded by 2% to $588 million, led by robust digital sales. Music Publishing revenue climbed by 5% to $161 million compared to last year's comparable period.

On Thursday, Warner Music was flat at $15.73.