Feeds

EMI profits up on iPod factor

Digital means dollars...

Build a business case: developing custom apps

EMI is crediting downloads for a 13 per cent increase in profits despite falling sales of physical products.

The record giant, which only started offering music over the internet in 2003, and has Coldplay, Robbie Williams and Gorillaz on its books, increased profits to £159m on revenues which grew at just 2.1 per cent to £2.1bn.

Group digital sales jumped from £46.9m to £112.1m and group operating margin grew by almost a percentage point to 12 per cent in the year ended 31 March 2006. Physical sales fell 5.3 per cent.

EMI Group chairman Eric Nicoli said: "Digital revenues continue to grow at a very rapid pace in both divisions as we aggressively pursue new digital uses and demand for our exclusive music content. In 2005, Coldplay's latest album release, X&Y, was not only the industry's biggest selling album globally but also the largest selling digital album release in the US."

Digital sales in the US almost tripled over the year with mobile revenues growing fastest - increasing by a factor of nine, but internet downloads still make up 70 per cent of the market in the US.

In the UK and Ireland, physical sales fell 4.9 per cent but digital sales grew by 170 per cent. EMI blamed weak sales of compilations, especially over Christmas, for the decline.

Continental Europe, as EMI calls it, saw total industry sales fall 3.7 per cent. Digital sales in the region grew by 245 per cent and mobile revenues are a larger proportion of total sales than in the UK or US.

Physical and digital sales in Japan grew by six per cent in the year.

Looking forward, EMI predicted that digital music will make up 25 per cent of total global music sales by 2010.

More from EMI here. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.