EMI blames Coldplay for profits slump
MUSIC company EMI blamed delays in the launch of key albums by Coldplay and Gorillaz for a fall in sales and profits. The albums were due to be released during the fourth quarter of the year but Coldplay's X&Y will not come out until next month, while Damon Albarn's Gorillaz record hit the shops only on Monday.
Coldplay's lead singer Chris Martin last week blasted the company and its shareholders for putting pressure on the band to rush out the album. The controversial singer said: 'Shareholders are the great evil of this modern world.'
EMI said full-year profits to 31 March fell 13% to £141.9m, although these still beat analysts' expectations of £139m.
Chairman Eric Nicoli said: 'EMI Music's sales fell short of our original expectations due, in part, to lower than anticipated re-orders in the fourth quarter and the rescheduling of two major album releases.'
He hit back at suggestions that artists should compromise the quality of an album to meet a corporate deadline. 'We are absolutely supportive of our artists' creative endeavours,' he said.
The delay of Coldplay's album forced EMI to issue a profits warning in February. The band has sold 20m records worldwide and EMI expects the latest release to become a blockbuster.
EMI Music sales declined by 7.4% and market share fell to 12.9% from 13.5% in the previous year. Sales were supported by Robbie Williams' Greatest Hits, which shifted 6m copies, and the emergence of new acts such as Joss Stone.
The company, which also boasts Kylie Minogue, Radiohead and Norah Jones on its books, said digital sales, which the industry is counting on to drive growth after years of online piracy, surged to £49.7m from £15.1m a year earlier.
EMI said it was 'positive' on the outlook for the music industry and expects to deliver an improved performance. It said restructuring plans had saved £10m more than expected, with £35m worth of cost savings last year. The shares opened 1p up at 242p.
