Contradictory to the less than optimal states of both the music industry and the economy, Maltby Capitol just reported that major label EMI saw an increase in both revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
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Contradictory to the less than optimal states of both the music industry and the economy, Maltby Capitol just reported that major label EMI saw an increase in both revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
These positive numbers come from the six-month period that ended September 30, 2008. For perspective, EMI suffered a $12 million loss during the same stretch of 2007.
“EMI music is starting the process of recovery and has made some important strides forward on its route to success,” Elio Leoni-Sceti, who joined EMI as CEO in September 2008, explains.
A large portion of EMI’s increased sales can be credited to digital downloads, which accounted for 21 percent in total sales and saw a significant rise in profitability during this time period. CDs, on the other hand, are expected to drop from being 62 percent of EMI’s revenue to just 40 percent in the next five years.
Though this is certainly good news for EMI (and the music industry in general), chairman Guy Hands and his label are not out of the woods yet-despite the increases in revenue, EMI still reported a loss of $223.9 million.
“EMI Music itself is still only part way on the path to recovery,” Maltby chairman Lord Birt writes. “However, the initial cost cuts of £100 million [$143.4 million] which we announced after the acquisition have been largely achieved (though it will take time for all the benefits to flow through).”
EMI represents a variety of artists, including Coldplay and Katy Perry, both of whom the company cited as “global successes.”
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