EMI's Download Music Sales Soar - But Its Not All Good News For Coldplay's Label

EMI has seen download music sales rise by almost 600% in the six months to the end of September, and says they are becoming a major part of its business. Analysts said by 2009 digital music and publishing should account for about a quarter of total turnover at the home to Kylie Minogue and Norah Jones.

CDs, however, still account for most of EMI's turnover, and overall sales fell at EMI by 11.4% during the half year. It said half-year profits were £36.9m ($68.2m), down from £39.8m.

Overall sales in the period were £851m compared with £960m in 2003. Shares in EMI closed up 15% in London on Friday as investors saw the results as an indication that the industry was rebounding as online music sales start to take off.Download music revenue was £12.2m, up from £2.1m a year earlier, while the group's music publishing division saw its online sales increase to £6.1m from £2.8m.

"The legitimate digital music market continues to expand rapidly and we remain confident that digital represents a key driver for future industry growth," said EMI chairman Eric Nicoli. Mobile phones are also providing a line to future revenue sources through ringtones and other innovations and EMI said it sees "exciting opportunities".

A mobile phone memory card featuring music and videos by EMI artist Robbie Williams has recently been issued. EMI said new releases from The Rolling Stones, Robbie Williams and Blue during October and November meant it was on course to meet full-year profit expectations. "Turnover for October and November to date is well ahead of last year, significantly reducing the first-half decline," said Mr Nicoli.

UK-based EMI added it had suffered from the weakness of the dollar, which cuts the value of any profits it makes in the US. EMI said continental Europe had proved its most difficult market, with sales "experiencing significant declines during the period".

In March the world's third largest record company said it would axe 1,500 jobs and outsource CD production in Europe and the US as part of a restructuring.