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EMI upbeat on chances of Warner Music takeover as sales steady
London, Nov 20: British music group EMI said today that it was confident its takeover offer for rival Warner Music would succeed as it reported interim results showing sales holding steady despite a wider market slump.
London, Nov 20: British music group EMI said today that it was confident its takeover offer for rival Warner Music would succeed as it reported interim results showing sales holding steady despite a wider market slump.
The group, home to the rolling stones and Robbie Williams, said it had made a "firm proposal" to US media giant Time Warner over its recorded music division.
EMI said the talks were at an "advanced stage", but was coy about details.
"We have considered rigorously every aspect of our proposal and wouldn't be making it if we didn't think we had good prospects (of success)," EMI chairman Eric Nicoli told reporters.
Like its rivals, EMI has been hit hard by sliding sales of CDs and rising piracy, particularly over the Internet.
In the six months to September, however, EMI saw revenue dip only slightly to 960.3 million pounds ($1.63 billion) from 961.5 million in the same period of the previous year.
This compared with a 10-percent slide in sales by the overall recorded music industry, the group noted.
Interim operating profit edged up to 79.7 million pounds from 79.0 million in the year-earlier period.
But pre-tax profit slumped to just 11.9 million pounds from 194.4 million, undermined by heavy retailer de-stocking in Japan and the absence of a one-off gain made in the same period of the previous year.
Bureau Report
EMI said the talks were at an "advanced stage", but was coy about details.
"We have considered rigorously every aspect of our proposal and wouldn't be making it if we didn't think we had good prospects (of success)," EMI chairman Eric Nicoli told reporters.
Like its rivals, EMI has been hit hard by sliding sales of CDs and rising piracy, particularly over the Internet.
In the six months to September, however, EMI saw revenue dip only slightly to 960.3 million pounds ($1.63 billion) from 961.5 million in the same period of the previous year.
This compared with a 10-percent slide in sales by the overall recorded music industry, the group noted.
Interim operating profit edged up to 79.7 million pounds from 79.0 million in the year-earlier period.
But pre-tax profit slumped to just 11.9 million pounds from 194.4 million, undermined by heavy retailer de-stocking in Japan and the absence of a one-off gain made in the same period of the previous year.
Bureau Report