You wouldn’t wish your enemies the job of trying to restructure and revive EMI at this point, but at least they are trying: Elio Leoni-Sceti, the new CEO of the troubled music label, will announce a restructuring of the company today in London, as part of the company’s first half 2008 earnings announcement, reports FT. The company will be split into three global business units: new music, catalog and music services, with additional resources being put into marketing functions. For the six months ending September 30th, the company made $92 million in EBITDA, compared with a loss of $22 million last year.
Leoni-Sceti, who is embarking on a three-week global tour to explain this reorg, said: “EMI is absolutely not bankrupt, far from it. EMI has never been in such a financially sound situation”.
Late last month we reported that EMI had even missed its digital music targets, something of a rarity even among music labels. We also noted earlier that the company is a planning to launch a music portal at EMI.com: now the CEO says the site will be limited in scope, as we suspected, but provide “learning value for the consumer,” he said. Highly unlikely that it would have any other label licensing music for the portal, unless, say, it ties up with a third-party online provider.
Photo Credit: EMI