Warner Music Group Corp reports losses and stock drop

Warner Music Group Corp reports losses and stock drop

Warner Music Group (WMG), the third-largest of the "big four" major record labels, reported a larger second-quarter loss and suspended its quarterly dividend.

The net loss increased up to $37 million, or 25 cents a share, from $27 million, or 19 cents, a year earlier. Income taxes totaled $13 million, up from $1 million a year earlier.

The loss influenced the picture of Warner Music Group at New York Stock Exchange trading. The company experienced the biggest ever drop of its stock by 29 percent to $6.39.

The 13 cent-a-share dividend was eliminated to build cash and make investments in artists. Record labels were hurt by piracy and consumer preference for buying single songs rather than full albums. Industry sales in the U.S. fell 17 percent this year.