EMI hits new high with girl power

The Spice Girls will provide the sizzle, sterling the damp squib when EMI reports its annual results this week, writes Katherine Hobson.

The music company, hived off last summer from Thorn-EMI, is on Tuesday expected to post annual profits of pounds 380m, up from about pounds 367m last year.

And the Spice Girls - whose debut album sold about 9 million copies in the UK and around 2 million in the US - deserve most of the credit. Girl power will help offset the adverse impact of the strong pound as EMI generates about 75 per cent of sales from outside the UK. "It's easily EMI's best- selling band," said Jason Crisp, an analyst with Societe Generale Strauss Turnbull.

Moreover, because the Spice Girls' album was their first effort, it is likely EMI will scoop a bigger chunk of the profits than from veteran acts with more clout.

"Selling 10 million Spice Girls albums is infinitely more profitable than selling 10 million Beatles discs," said Ivor Jones, analyst at Salomon Brothers.

EMI may not receive such big royalties from the Spice Girls' second album, due out later this year in time for the release of their movie.

Following the August split of Thorn-EMI, EMI Group includes the Virgin and Capitol record labels - with artists such as Janet Jackson, the Artist Formerly Known as Prince, and the Beatles - along with the HMV music store chain and Dillons bookstores.

EMI said in February it expected new albums by Blur and Jon Secada to bolster its release schedule in the final three months of the fiscal year.

"The third quarter was a bit disappointing, but the fourth quarter should have been much better," said Richard Harwood, an analyst with Collins Stewart.

The company will also reap gains from its music publishing business, which makes up about 25 per cent of annual profit.

EMI is the world's largest music publisher, with rights to music by artists including Nirvana, the Pet Shop Boys and Take That.

"If you look at the Billboard Top 200 and look at how many records EMI has, it's fairly weak in the US. If you look at it by publishing, it does practically every other title," said Mr Crisp.

Analysts say they expect the strength of the pound to cut profits. In February, EMI said the pound could reduce full-year profits by as much as pounds 25m.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Administrator

£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...

Recruitment Genius: Dialler Administrator

£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...

Ashdown Group: Contracts Manager - City of London

£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...

Guru Careers: Tax Manager / Accountant

£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...

Day In a Page

Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen
Satya Nadella: As Windows 10 is launched can he return Microsoft to its former glory?

Satya Nadella: The man to clean up for Windows?

While Microsoft's founders spend their billions, the once-invincible tech company's new boss is trying to save it
A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

A Very British Coup, part two

New novel in pipeline as Jeremy Corbyn's rise inspires sequel
Philae lander data show comets could have brought 'building blocks of life' to Earth

Philae lander data show comets could have brought 'building blocks of life' to Earth

Icy dust layer holds organic compounds similar to those found in living organisms
What turns someone into a conspiracy theorist? Study to look at why some are more 'receptive' to such theories

What turns someone into a conspiracy theorist?

Study to look at why some are more 'receptive' to such theories
Chinese web dissenters using coded language to dodge censorship filters and vent frustration at government

Are you a 50-center?

Decoding the Chinese web dissenters
The Beatles film Help, released 50 years ago, signalled the birth of the 'metrosexual' man

Help signalled birth of 'metrosexual' man

The Beatles' moptop haircuts and dandified fashion introduced a new style for the modern Englishman, says Martin King
Hollywood's new diet: Has LA stolen New York's crown as the ultimate foodie trend-setter?

Hollywood's new diet trends

Has LA stolen New York's crown as the ultimate foodie trend-setter?
6 best recipe files

6 best recipe files

Get organised like a Bake Off champion and put all your show-stopping recipes in one place
Ashes 2015: Steven Finn goes from being unselectable to simply unplayable

Finn goes from being unselectable to simply unplayable

Middlesex bowler claims Ashes hat-trick of Clarke, Voges and Marsh
Mullah Omar, creator of the Taliban, is dead... for the fourth time

Mullah Omar, creator of the Taliban, is dead... again

I was once told that intelligence services declare their enemies dead to provoke them into popping up their heads and revealing their location, says Robert Fisk
Margaret Attwood on climate change: 'Time is running out for our fragile, Goldilocks planet'

Margaret Atwood on climate change

The author looks back on what she wrote about oil in 2009, and reflects on how the conversation has changed in a mere six years