GO
Loading...

Enter multiple symbols separated by commas

EMI First-Quarter Revenue Down 5.1%

British music group EMI, which has agreed to a 2.4 billion-pound ($4.9 billion) takeover by private equity firm Terra Firma, said on Monday its first-quarter revenue fell 5.1% at constant currencies.

EMI said the result was in line with its expectations and the fall in revenue was led by a 13.4% drop at its music business, which more than offset an 11.9% rise at its music publishing business.

The music business decline came amid tough market conditions at a time when EMI had a light release schedule during its restructuring, the company said.

EMI's digital revenue rose 13.2% with cost savings coming through on budget.

The company said it was seeing "encouraging" early revenue indications from its Digital Rights Management-free products on Apple's iTunes online music store. The service was launched by EMI in April and by iTunes in late May.

DRM was introduced to contain piracy by preventing users from making multiple copies and EMI was the first major music group to take the risk of making its music available without the anti-piracy measure in an attempt to boost its digital sales.

Terra Firma is buying EMI for 265 pence per share.

Shares in EMI were taken off several FTSE indexes on Monday ahead of the takeover being completed.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.