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Warner Music profits fall on mystery investments

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Robust demand for releases from the likes of Ed Sheeran, Michael Bublé, Dua Lipa and Red Hot Chili Peppers has boosted quarterly sales at Warner Music Group by 10 per cent.

But the music conglomerate came under pressure after revealing a sharp drop in profits, which it attributed to a hit from “losses on the mark-to-market of certain investments”. It declined to provide further detail.

Its total revenue increased from $1.25 billion to $1.38 billion in the three months to March. Net income declined 21 per cent to $92 million.

Warner Music owns labels including Parlophone and Atlantic. It raised funds through an initial public offering on New York’s Nasdaq exchange two years ago, but remains under the control of Access Industries, an investor controlled