|Losses Continue As EMI Pays The Piper
Posted: February 2, 2009
LONDON (Hypebot) - Losses at EMI narrowed to $221 million (155 million pounds) in the last six months compared to $462 million (324 million pounds) in the previous half year. The company achieved the improved results despite a falling economy in part by slashing 1500 jobs.
But the debt which new owner Terra Firma took on purchasing EMI is the major cause of the continuing red ink. Financing charges in the last half year period were $214 million (150 million pounds). Interest on the debt of $3.43 billion ( (2.41 billion pounds) accounted for $178.4 million (125 million pounds) or slightly more than 80% of total losses. Additional pressure could come from primary lender CitiGroup which has troubles of its own, and has shown signs of impatience with EMI's progress in the past.
Digital revenues were a bright spot moving up 38% to $145 million (102 million pounds). CD sales declined 8%.