EMI Posts A Loss on First Half Of 2006
EMI announced a loss of 30.6 million pounds for the first half of 2006 due to falling CD sales, fewer product launches and an accounting fraud at its Brazilian business. Not pretty…
The interim loss, equivalent to €45.4 million or $58 million dollars, compared with a net profit of 36.7 million pounds compared with the same period of 2005. Looking ahead, EMI said it would be lifted by soaring digital sales and a heavier schedule of album launches, from the likes of Joss Stone, Robbie Williams and Norah Jones during the next few months. The publisher of The Rolling Stones and The Beatles said that revenues fell 6.1 percent to 867.9 million pounds in the six months to the end of September.
After EMI revealed the discovery of fraud at its recorded music business in Brazil last month, which resulted in inflated earnings there by around 9.0 million pounds, it has taken a beating in the press for mismanagement. However, EMI was buoyant about its digital revenues which increased over 68 percent in the first half of the year.
“We believe that the fundamentals remain in place for the music market to return to growth driven by digital development,” said EMI chairman Eric Nicoli. Sounds like Nicoli has things firmly in control…
