Warner Music reported net income of $36 million in its fiscal second quarter, down 63 percent from the $96 million the company reported in the prior year quarter.

The company reported $1.1 billion in revenue in the quarter, down 1 percent from a year ago.Adjusted operating income also fell about 1 percent to $270 million.

The company attributed the drop in net income to tough comparisons to the highs of last year. Warner Music also contended with the impact of exchange rates on the companys Euro-denominated debt resulting in a $34 million loss in the quarter after a $21 million gain in the prior-year quarter and an $11 million increase in income tax expense.

Recorded music revenue fell about 1 percent as did music revenue. Publishing revenue was up about 1 percent.

Our strategy is starting to bear fruit, with our strongest chart presence in two years, translating to expanding new release market share in the US. As a result, our true strength this quarter was partially obscured by challenging comparisons with last years outperformance. As we replicate our strategy across other labels and geographies, and drive a virtuous cycle of greater reinvestment, we expect to deliver lasting value for artists and songwriters, and sustained growth and profitability for shareholders, said Robert Kyncl, CEO of Warner Music Group.

More to come.