Falling CD sales hit EMI profits

Music giant EMI today saw half-year profits plunge after being hit by falling CD sales.

EMI, which has the Beatles and Robbie Williams among its artists, said the six months to September 30 had been ‘‘very challenging’’.

Sales and profits in the recorded music division - EMI’s largest - were down, and the poor showing meant turnover and profits across the group both fell.

Half-year turnover was £1.07bn, down on last year’s £1.14bn.

Stripping out one-off charges, operating profits slumped from £110.9m to £43.1m, while bottom-line losses widened from £9.7m to £56.6m.

EMI is forecast to make second-half operating profits in the recorded music division in line with last year’s figures.

Chairman Eric Nicoli said the target was ‘‘not out of reach’’, but added: ‘‘The final result will depend critically on market trends, which have shown some deterioration in the past two months.’’