EMI issues profits warning

Music giant EMI today warned of a major blow to profits after it revealed annual sales at its music division could be down by as much as 10%.

The group blamed weak market conditions over Christmas and lower than expected sales from EMI Music’s recent portfolio of releases.

It also said it would “significantly reduce” the size of its cost base and added that Alain Levy, who has been chairman and chief executive of EMI Music since October 2001, was stepping down from the board.