CD decline squeezes Warner Music

Warner Music has suffered as consumers shift to downloading music

Warner Music Group, whose artists include Madonna and Green Day, saw its quarterly loss widen as more consumers shifted to digital music.

For the three months to 31 March, the recording firm saw a loss of $37m (£18m) compared with a loss of $27m in the same period a year earlier.

Music sales overall were little changed at $652m, up 0.6%.

Foreign sales rose, but this was not enough to counter lower domestic sales, as the weak market for CDs worsened.

The firm said retailers had been slow to replenish their stocks of CDs as the broader economy cooled.

As consumers face higher bills for food and fuel, sales of other goods are falling.

With continued uncertainty over the state of the economy, the firm said it would suspend its dividend to shareholders while it sought to cut its net debt.