EMI Group today (Oct. 17) predicted a boost in first-half profits, thanks in part to successful album releases from Coldplay, Paul McCartney, the Rolling Stones and Keith Urban, among others.
In a trading update for the six months ending Sept. 30, the London-based major said its ongoing restructuring program helped pave the way for a resurgent six-month financial period.
First half revenue growth in its EMI Music division is expected to reach 4.5% on a constant currency basis, the group said. Operating margins were expected to increase by about one percentage point.
EMI also remarked that revenues from digital sources continue to “enjoy very strong growth year-on-year.”
Stock in EMI rose 1.7% to 228p in morning trading on the London Stock Exchange.
For its music publishing division, EMI predicted 5.5% revenue growth on a constant currency basis. Operating profit at EMI Music Publishing is likely to be in-line with the prior year, due in part to higher share-based pay and pension charges, EMI said.
Overall, the major’s interim profit before tax, amortisation and exceptional items was expected to increase by 9%. Full-year results would be deliver on the company’s own expectations, EMI added.
First-half net debt was anticipated to rise £60 million ($106 million) to £1.06 billion ($1.8 billion), with an increase in working capital outflow due to strong September sales. Net finance costs would rise by £47 million ($83 million).
EMI is scheduled to unveil its interim results on Nov. 16.