British-based music giant EMI Group warned today profits would slide 20 per cent this year as conditions in the industry worsened, sending shares tumbling 27 per cent.
EMI, whose artists include Janet Jackson and Radiohead, said it had seen a marked deterioration in conditions, with trading in recorded music, particularly in the United States, worse than expected.
In light of the poor conditions, EMI said it was making £100 million sterling (euro 148 million) of restructuring provisions.
As part of its restructuring, EMI said it may exit manufacturing and distribution and was in talks with a number of parties on the subject.
EMI tried and failed to merge with rival Warner Music last year and then BMG this year. Both deals fell apart after opposition from regulators opposed to the world's five music majors shrinking to four.
The economic downturn has hit the music industry hard this year, especially the major groups - Warner Music, Universal Music, BMG and Sony Music.
EMI is the world's largest music publisher and third largest recorded music company.