EMI makes money but posts a loss

EMI has reported a pre-tax loss of £349 million for the year ending 31 March 2012 after a write down of catalogue assets totalling £372 million and redundancy payments of £37 million pushed the major into the red. After taking these costs into account, underlying earnings were £290 million, and EMI’s operating profit was up to £133 million, prompting EMI boss Roger Faxon to tell staff that the figures represented an "incredibly strong performance... set against the backdrop of a challenging state of the music market and wider economic conditions".

Warner Music saw revenues slip in its third quarter - partly because of currency fluctuations, though with costs down the mini-major was able to reduce its losses overall, to $32 million, compared to $46 million in the same period a year earlier. Digital revenue continued to boom, offsetting the continued slump in physical sales. The major said its digital revenues were up 13% (16% with constant currencies), and now accounted for 41.5% of all recorded music income.