Chrysalis Group plc saw interim losses build, as the British music company felt the pinch from being dragged through a failed offer process and the experience of a "difficult" period for its music publishing activities.
The company has reported an operating loss of £13.9 million ($27 million) in the seven months ending March 31, compared with the six months ending Feb. 28, 2007.
At the same time, revenue dipped slightly to £28.6 million ($56.6 million) from £29 million ($57 million).
Chrysalis' music publishing NPS (Net publisher's share) fell 7.4% to £5.6 million ($11 million), as the firm felt the effects of a quiet release schedule, the now-resolved U.S. screenwriters' strike, and the negative efforts of its well-publicized offer process.
The company, said CEO Jeremy Lascelles in a statement, had "performed broadly in line with management expectations in the first seven months of the financial period" due mainly to lower than expected net finance charges and improved performance from its export subsidiary, Lasgo Chrysalis.
Lascelles added, "Our Music publishing business has experienced a difficult first seven months, dominated by the negative impact on new signings of the aborted offer process and the expected quiet release schedule. We are now reinvigorating the business and remain optimistic that we will return to NPS growth in 2009."
As previously reported, Chrysalis rejected a 155 pence-per-share cash offer on April 15, which would have valued the business at about £104 million ($205 million), and terminated formal discussions with potential acquirers. Chrysalis isolated the "credit crunch" as a key factor to its decision to end discussions on a buyout.
Billboard.biz reported that EMI Group and Paris-based Lagardère were among the last bidders for the company, while Bug Music, Warner Music Group and Universal Music Group had pulled out of the process earlier.
Chrysalis this week revealed it had spent £900,000 ($1.78 million) on advisers related to the failed process, while there was an estimated £11.8 million ($23.3 million) hit for the buyout of the company pension scheme.
Lascelles remains upbeat on the beginning to the second half, noting it has started "very well," with strong chart and airplay performances by a number of its signings, including Estelle, Portishead and Pendulum.