This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8499483.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
EMI reports £1.75bn annual loss | |
(6 days later) | |
Record company EMI has reported an annual pre-tax loss of £1.75bn in the year to 31 March 2009 amid continued fears over the state of its finances. | |
The results for EMI, which has deals with Robbie Williams and Coldplay, include more than £1bn in write-offs. | The results for EMI, which has deals with Robbie Williams and Coldplay, include more than £1bn in write-offs. |
The firm has been hit by illegal downloading and the move away from album sales to single digital tracks. | The firm has been hit by illegal downloading and the move away from album sales to single digital tracks. |
EMI is at the centre of a legal dispute between private equity owner Terra Firma and US bank Citigroup. | EMI is at the centre of a legal dispute between private equity owner Terra Firma and US bank Citigroup. |
Terra Firma is seeking billions in damages linked to its £4bn purchase of EMI in 2007. | Terra Firma is seeking billions in damages linked to its £4bn purchase of EMI in 2007. |
It accuses the bank of inflating the price of the firm by not revealing that the only other bidder, Cerberus Capital Management, had withdrawn. | It accuses the bank of inflating the price of the firm by not revealing that the only other bidder, Cerberus Capital Management, had withdrawn. |
Every single cent of Terra Firma's equity has been wiped out. Robert PestonBBC Business Editor Read Robert's blog EMI and its Beatles reliance | Every single cent of Terra Firma's equity has been wiped out. Robert PestonBBC Business Editor Read Robert's blog EMI and its Beatles reliance |
Citigroup is contesting the claim, saying it will defend its role in the proceedings "vigorously". | Citigroup is contesting the claim, saying it will defend its role in the proceedings "vigorously". |
Shortfall | Shortfall |
EMI is now the smallest of the four major record labels, and has launched a turn-around plan to try to cut costs and boosting internet sales to compete against the likes of Universal and Warner. | EMI is now the smallest of the four major record labels, and has launched a turn-around plan to try to cut costs and boosting internet sales to compete against the likes of Universal and Warner. |
It has also cut about 2,000 jobs but lost some of its acts, including Radiohead, in the row that followed. | It has also cut about 2,000 jobs but lost some of its acts, including Radiohead, in the row that followed. |
BBC business editor Robert Peston said the results showed "one of the biggest ever losses on a private equity investment". | BBC business editor Robert Peston said the results showed "one of the biggest ever losses on a private equity investment". |
EMI was sold at the height of the private equity buyout bubble in 2007. The business has been battered by its high debt levels and a weak performance as record companies struggle to make cash . | EMI was sold at the height of the private equity buyout bubble in 2007. The business has been battered by its high debt levels and a weak performance as record companies struggle to make cash . |
The group warned of a "likely significant" shortfall when it had to meet covenants on its £2.6bn debt at the end of March 2010. | The group warned of a "likely significant" shortfall when it had to meet covenants on its £2.6bn debt at the end of March 2010. |
Excluding its huge one-off write-offs, EMI saw operating profits of £143m, compared with £101m the previous year. | Excluding its huge one-off write-offs, EMI saw operating profits of £143m, compared with £101m the previous year. |
Previous version
1
Next version