City news anyone? Well, EMI was able to deliver some good news finance wise yesterday with a trading update on the first half of its current fiscal year, which ended on 30 Sep. Major releases from the likes of Coldplay, Gorillaz, The Rolling Stones and Paul McCartney helped the major achieve a 4.5% increase in music sales, while the group's publishing business enjoyed a rise of 5.5%. Altogether EMI anticipates a 9% rise in profits, which will help the group improve its market share.
Despite the upturn, opinions were mixed in the always-hard-to-please UK investment community. For some the increases were lower than expected given that the period included the release of those major albums, delays on which had been blamed for past disappointments in EMI's performance. But others pointed out that EMI's profits rise came as the industry as a whole saw a slight decline, and in that context the major's performance should be measured more on its increase in market share than on the profits rise itself. The optimists also pointed out those flagship albums should continue to sell well in the run up to Christmas and, coupled with a new Robbie Williams album this month, the second half of the current financial year should also prove to be a good one from EMI.
For investors looking to the long term, of course, the major's digital future is, of course, key. In its update the major label reported that "digital revenues in both divisions continue to enjoy very strong growth year-on-year", though specifics were not provided. They may appear in the more detailed financial update promised next month.