EMI’s profits have tripled as a result of cost-cutting initiatives and favourable currency exchange rates.
Terra Firma, the private equity firm which bought EMI in 2007, led a massive overhaul culling 2,000 staff in its aim to save £200m per year. This, in addition to new releases from artists like Coldplay whose Viva La Vida album was the best selling album of 2008, has seen profits grow to £163million, from £51million, despite the fact that revenues were down by 10%.
EMI’s market share in the US is down slightly to 9.5% from 9.7%
Warner Music reported a pretax loss of $58 million (£39 million) in the first quarter of 2009. Earnings were down by 17% to $80m.