EMI shares spun lower as the company emerged today from a dismal year of slumping profits.
EMI, home to artists such as Radiohead and Kylie Minogue, posted a sharp but expected 40 per cent fall in adjusted pre-tax profit and said its radical overhaul was going to plan in spite of an industry ravaged by an economic slowdown and piracy.
The world's third-biggest music company saw its stock slide as much as 7 per cent as analysts took fright after a post-results meeting, despite the British group's insistence it would deliver improved results this year.
"EMI faces so much of a struggle with piracy and they need to find a way to protect themselves. Sales are falling and there are a number of factors to take into consideration, such as the the HMV float not going well," said Mr Martin Dobson, head dealer at Natwest Securities in London.
In a bid to improve its chances of discovering top acts, EMI unveiled an extensive overhaul in March, with 1,800 job cuts and 400 artists scrapped from its roster.