EMI Increases Revenues, Narrows Loss From April-September 2008

As we predicted when the blogosphere was all up in arms over reports of EMI’s massive losses in the six months prior to March 31, the label’s financial situation has improved dramatically since then.

A report released today by label owner Terra Firma shows that for the six months prior to September 30, 2008 (including the chart-topping reigns of Coldplay and Katy Perry), revenues were up, EBITDA had improved, and while sales of CDs were down (shocker!), digital downloads increased 38% from the year before.

Specifics from the report, courtesy of Billboard, in helpful, bullet-point form.

  • [R]evenue was up 10% to £737 million ($1.06 billion) from £667 million ($960.9 million) in the period ending Sept. 30, 2007
  • EBITDA earnings were up 202% to £130 million ($187.3 million) compared to £43 million ($61.9 million) in the same period last year. 
  • EMI Music turned a £12 million ($17.3 million) EBITDA loss in the six months ending Sept. 30, 2007 into EBITDA of £59 million ($85.1 million) for the same period in 2008.
  • EMI Music Publishing increased EBITDA 7% from £57 million ($82.2 million) to £61 million ($88 million) in the same period.
  • Digital revenues at EMI Music have increased and now represent 21% of total sales, compared with 16% in the same 2007 period.
  • Digital sales over the six months increased 38% to £102 million ($147.2 million) from £74 million ($106.8 million) the previous year.
  • Physical sales fell 8% from £324 million ($467.5 million) to £298 million ($430 million) over the same period.
  • A 5% increase in synchs and licensing revenue, from £78 million ($112.5 million) to £82 million ($118.3 million), helped EMI Music achieve total revenue of £482 million ($695.3 million). The total is up 1% from £476 million ($687.7 million) the previous year.
  • The group still recorded a six-month loss of £155 million ($223.9 million) after restructuring charges, amortisation, interest charges and tax, but that’s an improvement on the £324 million ($468.3 million) loss in the same period in 2007.
  • Profit from operations was £6 million ($8.7 million) compared with a loss of £200 million ($289 million) a year earlier.
  • It states that of Maltby’s £250 million ($361.4 million) injection for restructuring costs, only £68 million ($98.3 million) has been used.

While the report understandably singles out Coldplay and Katy Perry as major successes; we find the acts new CEO Elio Leoni-Sceti points to as future moneymakers surprising:  

He states that the major’s new A&R strategy (including cutting back artist advances) will flow through this year following signings such as Depeche Mode, Hockey, the Postelles, Trevor Andrew, Adelitas Way, Priscilla Renea and Willie Nelson.

We’re still banking on Lily Allen and Keith Urban for the first six months of 2009.

See Also:
Most Downloaded Songs Of 2008: EMI Actually Makes List
Music Labels In Talks To Create Hulu-For-Music (GOOG)
EMI Launching Its Own Portal? Not Really

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