EMI Group plc's share price plummeted today following the company's disclosure that revenues in its recorded music division are expected to be 15% down for the financial year that ends on March 31.

By mid-afternoon in London, EMI's shareprice was down to 213.25 pence ($4.17), a drop of 10.96% from the previous day's closing price. The shareprice hit a low of 202.23 pence ($3.96) during the day's trading, with more than 123 million shares changing hands.

In a statement issued to the London Stock Exchange, the music major said: "This revision to expectations is as a result of the continued and accelerating deterioration in market conditions in North America where, in the calendar year to date, the physical music market as measured by Soundscan has declined by 20%."

This "unprecedented level of market decline," EMI added, has led to an "exceptionally high level of product returns." EMI says the net sell-through on its current releases and catalog has been lower than anticipated, and twinned with a high volume returns, "the negative impact on gross margin has been higher than normal."

Analysts had expected the company to post an annual pre-tax profit of £103.8 million ($202.2 million) before goodwill and exceptional items. "This will put them in a potentially perilous financial predicament and they'll need very understanding bankers," SG Securities analyst Anthony De Larrinaga told Reuters.

EMI Music Publishing continues to perform in-line with expectations, the statement read.