Warner Has 3rd-Qtr Gains; EMusic, RealNetworks Dip

In a busy earnings day, Warner Music Group posted a 10% jump in both revenues and profits for the third quarter, which ended Sept. 30. Earnings before interest, taxes, and amortization (EBITA) rose to $87 million from $79 million last year; revenues rose to $938 million. Warner attributes the gains in part to a rebound in international sales, led by Europe and Japan.

Meanwhile, parent Time Warner had third-quarter EBITA of $1.276 billion, vs. $1.611 billion last year; revenues were $6.873 billion, vs. $6.72 billion. Proposed merger partner America Online also reported its quarterly results yesterday, with revenues up 34% to $1.97 billion, and net income nearly doubling to $345 million. Time Warner shares closed up $3.69 at $69.25; AOL, whose results came after market close, was up $3.31 to $46.91.

In other earnings, EMusic had net loss of $17.3 million, or 43 cents per share, for the fiscal first quarter, vs. loss of $14.2 million, or $1.09 per share, last year. Revenues rose to $4.6 million from $180,000. EMusic shares closed flat ahead of its announcement at 75 cents.

Shares in RealNetworks fell $6.81 cents, or 31% yesterday, following word that fourth-quarter revenues may be affected by weak Internet ad spending. The company had third-quarter net loss of $30.8 million, or 20 cents per share, vs. a profit of $3 million or 2 cents per share last year. Net revenues increased 92% to $67.1 million.