FOR EMI, PROFITS RISE,
MARKETSHARE TUMBLES

EMI announced today that its pre-tax profit rose 8.1% last year, up to 245.5 million pounds ($365 million), an amount slightly higher than analysts' forecasts.

But the news wasn't all good news from the EMI camp, as the British music company's marketshare decreased both worldwide and in the U.S. EMI's slice of the world recorded music slipped from 13.2% to 12.5%, and its U.S. share plummeted from 12.3% to 9%.

And despite the rise in pre-tax profit, Commerzbank Securities cut EMI's investment rating, from "hold" to "accumulate," after what it said was disappointing sales growth in full-year results.

"The overall sales growth, at 0.5%, was below ComSec's expectation of 2-3%," the company stated. "ComSec remains concerned about short-term performance, impacted by sluggish CD sales, high levels of piracy and a high spend to achieve cost reductions."

EMI said it expected to make "satisfactory" progress overall in the coming year bolstered by new albums from Spice Girls, Robbie Williams, Radiohead and Janet Jackson.

"After less than two months of the new fiscal year, trading is on track," said EMI Chairman eric nicoli',390,400);">eric nicoli',390,400);">Eric Nicoli. "Given our stronger recorded music release schedule and the momentum in our music publishing business, I am confident that we will make satisfactory progress in the year ahead."

In January, EMI, the world's third-biggest music company, announced merger plans with Warner Music, which would create a recording entity worth $20 billion. Of course, Warner Music is owned by Time Warner, which is itself in the process of merging with Internet goliath AOL.