EMI Group PLC
5 February 2002
EMI GROUP plc
LONDON 5th February 2002: EMI Group plc today announces that profit before tax,
amortisation and exceptional items ('Adjusted PBT') for the year ending 31st
March 2002 is now expected to be in the order of £150m. This compares with a
market range of £160m to £207m.
This reduced expectation is the result of a lower full year sales forecast in
the Recorded Music division, adverse exchange rate movements, and some specific
Despite strong performances in the UK and much of continental Europe, the second
half outlook for turnover in Recorded Music is impacted by the continuing
economic downturn in Latin America and Asia, underperformance in the USA and the
slippage of some important Japanese album releases into the next financial year.
EMI Music Publishing is on track to exceed last year's excellent result despite
the unhelpful conditions in the music and advertising markets.
Management is confident that the Recorded Music business will see a significant
improvement in profitability in the years ahead under Alain Levy's leadership.
Since his appointment as Chairman and CEO of EMI Recorded Music in October, he
has set about strengthening his management team, eliminating loss making
businesses and developing a strategy to drive long term growth.
A presentation on the wide-ranging changes already made, in progress and
planned, together with the costs of these actions and their expected benefits,
will be made in London on 20th March 2002.
Alain Levy said: 'We are now in the middle of a major redesign of EMI Recorded
Music which will result in a reduction in our cost base, but will also make us
more efficient and more competitive in order to drive growth.
'We have made several very important organisational changes in the last few
weeks, and more will come in the weeks ahead. Since joining EMI, David Munns and
I have grown increasingly convinced that the company has a fantastic collection
of people and assets and that performance, in terms of sales and profitability,
can be improved quickly.
'There's no doubt that some of our difficulties are a function of music industry
practices. We're committed to finding new ways to do business and to placing
long term, sustainable development at the top of our agenda.
'Missing a target is not good news - but most important for EMI is the shape of
things to come. We are on a path to reshaping the Recorded Music group and we
are very positive about the future.'
Eric Nicoli, Chairman of EMI Group, said: 'This is a disappointment for us all,
but Alain Levy and his team have made great strides in restructuring and
repositioning our Recorded Music business. The actions taken are already making
a positive impact, the emerging strategic plan is compelling, and we are
confident that the group can make substantial progress as we move into the next
fiscal year and beyond.
'With regard to the dividend, as we stated in November, the final dividend will
be determined by the Board at the end of the fiscal year in the context of the
full year trading outcome, our assessment for the prospects for next year and
future years and our investment plans for both EMI Recorded Music and EMI Music
EMI Group plc
Amanda Conroy SVP, Corporate Communications +44 20 7667 3216
Siobhan Turner Investor Relations Director +44 20 7667 3234
Brunswick Group Limited
Patrick Handley +44 20 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange