Profit sounds right note for EMI

Music group EMI said its annual underlying profit would be slightly better than feared at the time of a profit warning in February due to a smaller-than-expected drop in recorded music sales.

The world's third-biggest music group, whose artists include Radiohead and Norah Jones, said profit before tax, goodwill and exceptional items for the year to March 31 would be about £141 million, compared with the previously indicated £138 million.

Sales in EMI Music would fall about 7.5 per cent at constant currencies, compared with the previously expected decline of eight per cent to nine per cent.

Prior to the February profit warning, EMI had been expecting music sales to be in the range of flat to down four per cent, while analysts' consensus profit forecast had been around £168 million.

EMI said in February it had been hit by delays in the release of key albums from top bands Coldplay and Gorillaz.

EMI is due to publish annual results on May 24.

Its shares have underperformed the UK media sector by about seven per cent in the past 12 months and closed on Friday at 247 and a quarter pence, valuing the business at about £2 billion.