As expected, the EMI Group posted financial figures yesterday that showed a decline in both revenue and profit for the first half of the current financial year. Revenues for the period were £867.9 million, down 4.1% on the same period last year. Profit was also down, from £86.7 million to £62.7 million.
The company's fortunes were hit most by a 5.2% slide in revenues in its recorded music division. This was partly because of the nature of the release schedule, with a number of key releases coming in the second half of the year. But overall figures were also affected by that previously reported "one off" accounting fraud in the company's Brazilian record company, which was discovered only recently, and which resulted in a previous overstatement of revenue of £12 million.
However, with those key albums - including new material from Robbie Williams, Norah Jones, Keith Urban, Joss Stone, plus the Beatles 'LOVE' album - currently in the process of being released, EMI chiefs say they are confident that overall they will achieve full year expectations.
Group chairman Eric Nicoli told the London Stock Exchange: "In EMI Music, our A&R strategy is proving to be successful. We continue to break new acts, who are not only producing the hits of today, but are strengthening our roster for the long term".