EMI Group warns of IFRS impact on music division
EMI Group has warned that new accounting standards will reduce growth by approximately 2% at EMI Music
EMI Music, a division of EMI Group and the home of Coldplay, the Gorillaz and
Paul McCartney among other acts, has warned investors that international
accounting standards are expected to reduce growth when it releases interim
results in November.
In a trading statement ahead of the group’s interims, EMI said growth in its
music subsidiary would be reduced from 6.5% to 4.5% because it had to reclassify
revenues from jointly controlled operations under IFRS.
EMI group added that higher share-based payments and pension charges under
IFRS where also expected to impact EMI Music results.
The good news for shareholders, however, is that revenues at EMI Music are
still strong despite a weaker than expected music market.
This, combined with cost savings from a restructuring programme are expected
to offset the additional charges generated by IFRS, EMI said.