onosideboards
May 20, 2003, 10:42 AM
http://story.news.yahoo.com/news?tmpl=story&u=/nm/20030520/bs_nm/media_emi_dc_3
By Merissa Marr
"LONDON (Reuters) - Brutal cuts to jobs, artists and labels pushed EMI's full-year profits higher but sales tumbled and the music company said on Tuesday there would be further declines this year as it grapples with a biting industry slump.
EMI, home to artists such as Pink Floyd, Radiohead and the Beatles, said it saw signs of the key U.S. market bottoming out but predicted the recorded music industry would shrink another five to eight percent this fiscal year, and its share price fell.
EMI's adjusted pre-tax profit rose to 177.3 million pounds ($290.2 million) in the year to end March from 153.3 million pounds, after the key North America market swung back to profit. Analysts had forecast profits between 180 and 185.5 million.
The world's third-biggest music company said sales fell 11 percent to 2.175 billion pounds, dragged lower by a 12.6 percent fall in recorded music, sharply below the worse-case scenario of a six-percent fall it had previously predicted. At constant currencies, group sales fell 8.4 percent.
EMI shares were five percent down at 128 pence at 4:38 a.m. EDT.
The $32 billion music industry has suffered from a lethal mix of rampant piracy, weak economies and competition from rival entertainment such as video games, forcing music companies to slash costs and re-assess their business models.
In a move to secure a future in an uncertain industry, a number of music companies have held talks about potential tie-ups. However, EMI played down the need for mergers.
"We have demonstrated our ability to operate whatever the market conditions and whatever the competitive set," EMI Chairman Eric Nicoli told reporters on a conference call.
"We think we will make progress with or without participation in industry consolidation. Beyond that I have no intention of fueling speculation."
OUTPERFORM THE MARKET
EMI launched a major overhaul last year, slashing 1,900 jobs and axing 400 acts better to cope with the slump in sales. The music company said it had subsequently more than doubled its recorded music margins to 8.5 percent from 4.1 percent.
But the cuts in artists and labels and a longer-than-expected restructuring shaved EMI's global market share to 12.8 percent from 13.4 percent. However, the company said it expected to increase that this year.
"We should be able to outperform the market in the current year," said Alain Levy, the head of EMI's recorded music arm.
In the historically difficult North American market, EMI said it had seen a turnaround after five years of losses, with margins improving by more than 12 percentage points.
While EMI draws 80 percent of its revenues from the recorded music business, music publishing had been holding up better in the downturn. However, music publishing sales fell to 401 million pounds from 416 million due to currency movements."
ALL THEY HAVE TO DO IS RELEASE A FULL-BLOWN LIB DVD AND SOUNDTRACK, PLUS A BEATLES VIDEO COLLECTION DVD, AND EMI WOULD BE SAVED!!! images/icons/smile.gif
By Merissa Marr
"LONDON (Reuters) - Brutal cuts to jobs, artists and labels pushed EMI's full-year profits higher but sales tumbled and the music company said on Tuesday there would be further declines this year as it grapples with a biting industry slump.
EMI, home to artists such as Pink Floyd, Radiohead and the Beatles, said it saw signs of the key U.S. market bottoming out but predicted the recorded music industry would shrink another five to eight percent this fiscal year, and its share price fell.
EMI's adjusted pre-tax profit rose to 177.3 million pounds ($290.2 million) in the year to end March from 153.3 million pounds, after the key North America market swung back to profit. Analysts had forecast profits between 180 and 185.5 million.
The world's third-biggest music company said sales fell 11 percent to 2.175 billion pounds, dragged lower by a 12.6 percent fall in recorded music, sharply below the worse-case scenario of a six-percent fall it had previously predicted. At constant currencies, group sales fell 8.4 percent.
EMI shares were five percent down at 128 pence at 4:38 a.m. EDT.
The $32 billion music industry has suffered from a lethal mix of rampant piracy, weak economies and competition from rival entertainment such as video games, forcing music companies to slash costs and re-assess their business models.
In a move to secure a future in an uncertain industry, a number of music companies have held talks about potential tie-ups. However, EMI played down the need for mergers.
"We have demonstrated our ability to operate whatever the market conditions and whatever the competitive set," EMI Chairman Eric Nicoli told reporters on a conference call.
"We think we will make progress with or without participation in industry consolidation. Beyond that I have no intention of fueling speculation."
OUTPERFORM THE MARKET
EMI launched a major overhaul last year, slashing 1,900 jobs and axing 400 acts better to cope with the slump in sales. The music company said it had subsequently more than doubled its recorded music margins to 8.5 percent from 4.1 percent.
But the cuts in artists and labels and a longer-than-expected restructuring shaved EMI's global market share to 12.8 percent from 13.4 percent. However, the company said it expected to increase that this year.
"We should be able to outperform the market in the current year," said Alain Levy, the head of EMI's recorded music arm.
In the historically difficult North American market, EMI said it had seen a turnaround after five years of losses, with margins improving by more than 12 percentage points.
While EMI draws 80 percent of its revenues from the recorded music business, music publishing had been holding up better in the downturn. However, music publishing sales fell to 401 million pounds from 416 million due to currency movements."
ALL THEY HAVE TO DO IS RELEASE A FULL-BLOWN LIB DVD AND SOUNDTRACK, PLUS A BEATLES VIDEO COLLECTION DVD, AND EMI WOULD BE SAVED!!! images/icons/smile.gif