Private equity firm Terra Firma released a report on Friday stating that record label EMI lost $1.2 billion last year, during which time the label’s market share dropped from 12 to 9 per cent. But here’s the good news: it was all the previous management’s fault. At least that’s what Maltby Capital, Terra Firma’s investment vehicle, which prepared the report, is saying.
Articles and blog posts heralding the bad news have been popping up all over the Internets today. But calm down! Things probably aren’t as bad as those results make them seem. Mostly because that figure is old!
It refers to the year ending March 31, 2008, seven months ago, and before EMI released smash albums from Coldplay and Katy Perry, which should definitely have helped this year’s results. In fact, the head of Maltby Capital said the same in the introduction:
EMI’s operational performance has improved significantly during the first seven and a half months of Maltby ownership, and we expect the six months results ended 30 September 2008 to show year on year improvement.
Since the formerly publicly-traded label is now private, we don’t know exactly how it’s doing. But, we wouldn’t be surprised if earnings to date this year were up from what they were the year before.
If anyone knows has more info about financial results at the label for the past seven months, drop us a line in the comments or send a tip to [email protected] As for the rest of you, stop panicking already!
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