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EMI Group made losses of #757m, the company reported last Friday, when its annual review for the year ended March 31 2008 was finally published. That is a loss amounting to more than #166,000 for every employee.
In his comments summarising the performance of the company, Lord Birt, chairman of EMI parent company Maltby Capital, is highly critical of the way in which EMI Music was being managed prior to its takeover last year.
While the group reported EBITDA of #164m, down 5% on the previous year, the business was hit by various charges to send losses spiralling. These included: #192m arising from a balance sheet re-valuation; #123m restructuring costs; #109m depreciation; and #520m of net financing costs.
EMI Music Publishing increased revenues by 2% to #411m, but EMI Music's revenues declined 23% to #1.047bn, prompting Lord Birt to give a damning indictment of the record company's performance.
While admitting that the loss was mainly due to accounting factors, Lord Birt ...