Revnue: $3.5 billion

Loss:$286 million

Former Polygram topper Alain Levy arrived in September as chairman-CEO of EMI Recorded Music, replacing Ken Berry, who left with a $9 million payoff.

Since then, Levy has been up to his elbows in major corporate surgery at the London-based music major. He has cut 1,800 jobs and sliced 400 artists from the roster. The highest-profile departure was Mariah Carey, paid $28 million to walk away from a five-album $110 million deal after the failure of her first Virgin release, “Glitter.”

Total restructuring cost is estimated at $340 million. EMI also issued two profit warnings in the past year, eventually announcing a £199.5 million ($313.9 million) loss for the year up until March. Sales were down 11% and global market share was down .7% to 13.4%.

New chiefs have been appointed at many of EMI’s national operations around the world, and new global marketing toppers have been named for the Capitol and Virgin labels.

Talks are under way to resign one of EMI’s biggest acts, U.K. pop star Robbie Williams, but he is shopping around for a deal .

EMI has started to slice noncore operations, selling off a 15% stake in German music web Viva to AOL Time Warner for S52.3 million ($51.42 million). It also reduced its stake in retail chain HMV.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Scene News from Variety