Music group EMI reported a drop in first-half profits today but said the beleaguered industry was rebounding as digital music sales start to take off.
Results for the six months to September 30th were affected by a release schedule weighted to the second half of the fiscal year and adverse currency effects.
But the company, third-largest music group in the world and home to artists including Radiohead and Norah Jones, said its full-year performance would be in line with the broader global music market which it expects to be flat to down 4 per cent .
EMI Music sales in October and November are running well ahead of last year due to releases such as last month's Robbie Williams greatest hits album, the company said.
And for the overall market in 2005, "it looks like you will see either modest decline or modest growth, somewhere in the range of plus or minus 2 per cent," said EMI Music chairman Mr Alain Levy.
Vivendi's market leading Universal Music reported a better-than-expected 4 per cent gain in third-quarter revenues last week.
EMI's digital music revenues more than quadrupled in the six months to September 30th on the success of mobile phone ringtone sales and online stores like Apple's iTunes.
Digital sales of £12.2 million pounds in the first half now represent more than 2 per cent of group turnover.
EMI made a pre-tax profit excluding exceptional items and goodwill of £36.9 million in the six months to September 30th, down from £39.8 million a year ago.