Digital music sales boost profits at EMI
Digital music sales boost profits at EMI
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Thursday, 20, Apr 2006 09:01
Record company EMI today announced that it expects its pre-tax profits to increase by around 12 per cent for the current financial year, with growth fuelled by soaring sales in the digital music market.
In a trading statement, the company said that its digital music revenues had increased by more than 150 per cent and accounted for over 5.5 per cent of EMI Music revenues for the year ending March 31st, 2006.
EMI said the strong performance reflected successful releases from a range of popular artists including global giants such as Coldplay, Robbie Williams and the Rolling Stones, as well as releases from local artists and emerging musicians such as KT Tunstall.
The music group said it expected to report full-year revenue growth of around four per cent across its businesses.
Revenues within EMI Music are expected to show a rise of two per cent, while EMI Music Publishing, which also saw a growth in digital revenues for products such as ringtones, is also set to report a rise of 2.5 per cent.
EMI said that the group would be implementing a series of cost-saving initiatives to ensure its businesses continued to be "best-positioned to operate effectively and efficiently in the increasingly digital marketplace".
The cost changes are expected to deliver cost savings of at least £30 million a year, with EMI Music's Japanese business at the centre of restructuring plans.
EMI is expected to release preliminary results on May 23rd 2006.
Shares in the London-listed music group have soared on the back of the positive trading statement, up 12.25p to 286.25p on early trading this morning.