Kyle SGMS used our newssubmit to tell us that one of the big record labels, EMI, has announced bad results. While still paying big artists millions of dollars, they blame piracy for their losses.
Comapies revenues tumbled to 2.446 billion pounds compared with a previous 2.673 billion and analyst forecasts of 2.45 billion. Sales for the overall industry fell five percent last year.
EMI, home to artists such as Radiohead and Kylie Minogue, posted a sharp but expected 40 percent fall in adjusted pre-tax profit and said its radical overhaul was going to plan in spite of an industry ravaged by an economic slowdown and piracy. |
The world's third biggest music company saw its battered stock slide as much as seven percent as analysts took fright after a post-results meeting, despite the British group's insistence that it would deliver improved results this year.
"(EMI) faces so much of a struggle with piracy and they need to find a way to protect themselves. Sales are falling and there are a number of factors to take into consideration, such as the HMV float not going well," Martin Dobson, head dealer at Natwest Securities in London.
In a drive to clear the decks and improve its chances of discovering top acts, EMI unveiled an extensive overhaul in March with 1,800 job cuts and 400 artists scrapped from its roster. EMI said at the time it had not paid enough attention to what the business was really about -- generating big-name stars.
They are also still reorganizing the company, cutting a lot of jobs. Core earnings fell to 241.9 million pounds, from 389.5 million.
Source: Yahoo.com
