EMI Takes Pre-Tax $546 Million Loss In Fiscal Year
August 7, 2012
EMI is reporting a pre-tax loss of approximately $546 million (£349 million) in the label's fiscal year, which ended on March 31. The loss was attributed to a write-down of the value of EMI's businesses following the sale of its publishing unit to Sony and the impending sale to Universal Music Group. However, EMI did have a slight increase in its revenue and profit. According to the UK's Guardian, EMI took a $582 million charge in writing down the value of the two units it put up for sale. In its previous fiscal year, EMI reported a profit of $828 million.
Revenue was up for EMI's fiscal year to $2.33 billion (£1.47 billion). Excluding the write-down and restructuring charges, EMI's operating profit grew from $108 million a year ago to $209 million. The recorded music division saw almost a two percent increase in revenue to roughly $1.61 billion, thanks to sales from Coldplay, Katy Perry and Beastie Boys. EMI's publishing unit was essentially flat at $679 million.
According to The Guardian, EMI CEO Roger Faxon said in a staff email that the fiscal year was an "incredibly strong performance...set against the backdrop of a challenging state of the music market and wider economic conditions." He called the impairment write-down "just an accounting issue," adding that EMI's adjusted operating profit figure is an "astonishing achievement in this market."