EMI Music Returns To Profit

EMI Music, the recorded music division of EMI, has returned to health posting earnings before interest, tax, depreciation and amortisation of £59m in the six months to September 30 compared with a £14m loss last year.

UK private equity firm Terra Firma acquired struggling music group EMI in a £2.4bn public-to-private transaction in August 2007.

The chief executive of EMI’s recorded music division told staff today of the increase in half year profits before announcing a restructuring programme. The new set-up will see the business will be split into three units new music, catalogue and music services.

In an interview with the Financial Times, chief executive Elio Leoni-Sceti said that EMI was in a financially sound situation and that Terra Firma was prepared to inject additional equity if it was required.

Source: Thomson Merger News