Warner Music Group, which earlier this week rejected a $4.2 billion takeover bid by EMI Group, has posted a narrower-than-expected loss, helped by rising digital downloads.
The company posted a net loss of $7m, or 5 cents a share, in the second quarter, compared to a net profit of $4m a year earlier.
Revenue rose 3.8% on the previous year to $796m. In the digital segment revenue was $90m, nearly triple a year earlier, and 11% of total quarterly revenue.
Warner music, which is the fourth largest music company in the world, said that major sellers during the quarter were Madonna, James Blunt and Sean Paul which helped to push US recorded music revenue up 22%.
Analysts said the strong growth will put pressure on EMI to raise its $28.50 per share bid which Warner Music rejected earlier this week.
