EMI to remain soloist

May 22, 2001
Web posted at: 0934 GMT

LONDON (CNN) -- After two failed merger attempts, Britain's EMI Group says it will pursue a solo musical career and focus on developing digital distribution.

The world's third-largest record company, with artists such as Radiohead, Janet Jackson and Mariah Carey on its roster, said adjusted pretax profit rose 5.7 percent  to £259.5 million in the year ending March 31.

"These pleasing results, achieved in the context of a weak worldwide music market and in spite of the potential distraction of our merger discussions, demonstrate the fundamental strength and quality of EMI's businesses," said chairman Eric Nicoli in a statement.

But costs associated with the failed merger last year with Time Warner's music business amounted to £42.9 million.

EMI said there were no significant charges linked to the recent discussions with Bertelsmann Music Group. Both merger talks were scuppered by anti-competition concerns at the European Commission.

"Now that it is clear that, in the current regulatory environment, a merger with another major music company cannot be pursued at acceptable cost and risk, we will proceed as an independent, music-focused group," said Nicoli.

EMI's global market share increased 1.6 percentage points over the past year to 14.1 percent and the group was number four in the U.S. with a 10.8 percent share. Global turnover was up 12 percent to £2.7 billion.

The company said it would give particular emphasis to North America in the current year and exploit its expanding U.S. repertoire globally. Digital distribution of music represented a major long-term growth opportunity.

EMI said its participation in the MusicNet partnership with AOL Time Warner and Bertelsmann, announced last month, would create the world's largest online subscription music service.

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EMI

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