Coldplay, Stones boost EMI

Monday, October 17, 2005 Posted: 0834 GMT (1634 HKT)


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Manage Alerts | What Is This? LONDON, England (Reuters) -- EMI Group, the world's third-largest record company, said Monday it expected first-half profits to climb due to higher revenues and cost savings from a restructuring program.

The company said it had increased market share in the global music market on the strength of releases by artists such as Coldplay, Gorillaz and the Rolling Stones.

Shares climbed 1.7 percent to 228 pence by 0709 GMT. EMI has "delivered good first half revenue growth, despite broader weakness in the industry," the Numis media team said in a research note.

The EMI Music division was on track for a 4.5 percent increase in first-half revenues on a constant currency basis. Operating margins were expected to increase by about one percentage point.

EMI Music Publishing was expected to show 5.5 percent revenue growth on a constant currency basis, with operating profit roughly flat compared with the prior year, due in part to higher share-based pay and pension charges.

Digital revenues, including ring tones and online services, "continue to enjoy very strong growth year-on-year," the company said.

The company's overall profit before tax, amortization and exceptional items was expected to increase by 9 percent, with full-year results on track to deliver on the company's own expectations.

Analysts on average expected the company's pretax profits to increase nearly 17 percent to £165.8 million, according to a poll of 13 brokerages by Reuters Estimates.

First-half net debt was seen increasing £60 million to £1.06 billion, with an increase in working capital outflow due to strong September sales, boosting net finance costs by £47 million.