- EMI’s eviction from the FTSE 100 at the quarterly reshuffle on September 10 was effectively decided yesterday when its share price dropped to its lowest level since 1987 amid fears of a profits warning and concern that it could be forced to pay out tens of millions of dollars to settle a lawsuit.
Shares in the world’s biggest music publishing company ended 11p lower at
181p after figures from the Recording Industry Association of America showed a 7% drop in compact disc shipments during the first six months of the year.
The figures, which came two weeks after the British Phonographic Association revealed UK recorded music sales in the three months to June were down 15.4%, make it unlikely that EMI will meet its forecast of flat revenues for the year.
Analysts reckon EMI needs to increase its share of the global music market by at least 14% to avoid missing its target. Given that its slice of the US music market is falling, that looks a tall order…..