MUMBAI:Warner Music Group Corp has held `challenging industry conditions` responsible for its fiscal third-quarter loss.One of the world`s largest recording companies, Warner`s loss for the quarter ended June 2007 was $17 million, or 12 cents per share, versus a prior-year loss of $14 million, or 10 cents per share, the prior year. Excluding nonrecurring items related to a corporate restructuring and settlement, the loss in the 2007 quarter was $29 million, or 20 cents per share.The company`s revenues have declined two per cent year over year to $804 million from $822 million.

Warner Music Group`s digital revenue, however, increased to $119 million, accounting for 15 per cent of its total revenue, in the quarter, up 29 per cent from $92 million in the prior year quarter.The recorded music revenue of the company fell four per cent, while music publishing revenue rose five per cent.