LONDON (Hypebot) – In its report to investors this morning, EMI detailed a net loss of £512 or US $802 million. The company also wrote off another £602 million ($943M USD) in 2009-2010 and despite a recent round of refinancing still has £3 billion ($4.7B USD) in outstanding debt.
Just in case investors think that things can't get much worse, EMI also forecast that it may need another cash infusion as early as next year and that it will fall short of its banking covenants (the financial requirement of its lenders) every year until at least 2015.
“EMI Music continued to be challenged by the overall decline in physical sales, which has not yet been fully offset by growth in digital sales.”
“The substantial dependence on a limited number of online music stores, in particular the iTunes Store, for the online sale of music recordings, and the resultant significant influence that they can exert over the pricing structure for online music stores,” created a growing risk to future profitability according to the report.
However, there was a bit of good news. Sales from recorded music were up 6.5% from the previous year and music publishing sales were up 2.1%.
Read the full EMI press release , putting a positive spin on the same numbers.