EMI is back in black
EMI returned to the black today with annual profits of £319.3m (€447m), despite worse than expected conditions in the recorded music market.
The company, which is home to stars including Kylie Minogue and Robbie Williams, said sales of recorded music fell 12.6% in the year to March 31 as the growing impact of music piracy and the disruptive effect of restructuring hit home.
For the group as a whole, sales were 11.1% lower while operating profit improved by 33.1% to £254m (€356m).
Last year the group axed 1,900 jobs and trimmed its roster of artists after being hit by a downturn in CD sales.
Chairman Eric Nicoli said: “This market movement was markedly worse than we, and others in the industry, anticipated at the start of the year and demanded a swift and robust response from all parts of EMI’s business.”
On top of tighter financial controls, EMI said it had invested time and resources in strengthening its culture and management to compete more effectively in tough market conditions.
In the year ahead, EMI said: “While the market remains volatile and difficult to predict, we expect it to decline further but, probably, at a slower rate than last year.”
