EMI Music: Sales Down, Earnings Up
May 7, 2009 at 10:23 AM (PT)
In a rather ironic twist, EMI MUSIC -- in its first full year under TERRA FIRMA's ownership -- saw sales decline 10%, yet had its EBITDA increase by more than 200% to $245.4 million from $76.8 million last year. The reason: The percentage of revenue emanating from non-CD sales (digital, licensing, rights, etc.), rose from 20%-35% of the company's income.
The company's market share also slipped slightly from 9.7% in 2008 to 9.5% this year.
In its press release touting these figures, EMI MUSIC, CEO ELIO LEONI-SCETI said: "I am very pleased we have delivered this strong operating performance and would like to thank all the staff and artists whose talent, creativity and hard work made it possible. These results are an important first step in building EMI’s future. We cannot afford to be complacent however since there is still a great deal of work to be done to restore EMI to its former greatness and we are doing it in the face of challenging economic conditions.
"Looking ahead we have some exciting new releases coming up, a much deeper understanding of the music consumer and a new engaged relationship with our artists to build on. Now it has established this platform, EMI can look to the future with confidence and optimism."