From Reuters:

Warner Music Group, the world’s No. 3 music company, on Thursday said profits fell 58 percent as CD sales slipped further, but shares rose as investors hoped the worst of an industry slump was priced into its stock.

Warner Music shares closed up more than 8 percent, as analysts said it beat Wall Street expectations for its fiscal fourth quarter.

“The numbers were better than people thought, they were certainly better than we thought they would be,” said Bishop Cheen, analyst at Wachovia. “Clearly the U.S. team is making it happen where they’re out-performing the market.”

Warner’s net profit was $5 million, or 3 cents a share, in the fourth quarter, down from a year-earlier profit of $12 million or 8 cents per share.

Warner’s stock price is still down more than 66 percent since the start of the year as evidence that the decline in music sales had accelerated became more clear to investors.

Warner is now the only major record and publishing music company still publicly traded after London-based EMI Group was taken private by leveraged buyout firm Terra Firma this year.

Shares in Warner Music rose 58 cents, or 8.1 percent, to close at $7.73 at close on Thursday.

Full story . . .

Thanks to ArtsJournal.