Untitled

Music Publishing
Strong und
\ /ww.kpmmusic.com
Continued geographic
expansion and significant
investment
EMI Music Publlshing delivered excellent
'esults for the year, with turnover increasing
by 11.8%. Net publisherS share rose 9.7%
and operating profit by 9.1%. Our results
reflect strong underlying growth together
with first time contributions from catalogue
acquisitions such as Windswept and Hit &
Run, as well as continued geographrc
expansion and significant investment in
lT to increase our internet presence.
We punued multipte strareg,es 'icluding
act ve rnvest.nent in loca acts, the acqJisition
of new catalogle when {rnancially viabre,
and the creation of a wide range of
opportunttes tor our songwriters - through
the licensing of songs for advertising, filmi
and televrsion and through digrtar dehvery
and the internet.
We had anotrer gooo yea. rn the US,
where revenues from mechanical.
performance and synchronisation were
each well ahead of last yearS levels.
The strong mechanical revenues in the US
came from artists such as TLC, Blink 'i82,
matchbox t\renty and the Goo Goo Dolls.
Our strategy of signing writer/produceE
such as Rodney Jerkins (Whitney Housto't,
Destiny5 Child) and Sean 'Puffy' Combs
(Notonous B.l.G ano Jennifer Lopez) also
produced excellent results. ln addition, lhe
matching of songwriter Rob Thomas from
matchbox twenty with Carlos Santana
resulted in the worldwide hit and Grammywinning
Song o{ the Year, Smcr;th.
Our US business also benefited from
the acquisition in July of nearly 40,000
active titles from the Windswept Pacific
catalogue, rncluding such hrsrorically prvotal
rock and roll titles as shout. Louie Louie
and Mony Mony and strong offerings
ot doo-wop, drsco and Lar't sonqs. The
catalogue offers great potentiai for future
growth opportunities and has the added
benefit of including the rights to the
Spice Girls' songs.
European sales were also higher with
significant increases in the UK, Germany
and ltaly. The UK showed improvement
across all revenue streams, boosted
by Genesrs and Phil Collins sonqs in the
recently acquired Hit & Run catalogue.
Germanyb higher mechanical income was
helped by artists such as Echt and Stefan
Raab, while ltalyS results reflected strong
mechanrcal receipB from locaj repertoire,
strong synchronisation income and the
acquisition of the back catalogue of the
European superstar Eros Ramazzotti
during the year.
lnjapan, we achieved outstanding success
with songs written or performed by local
supeEtars such as Utada Hikaru and Keqi
Ozawa, against the backdrop of a declining
market. As our music publishing assets
grow, we are looking for cost reductions,
particularly by keeping overheads under
control. ln Japan, Fujipacific was taken on
during the year to manage our business
in the territory, allowing us to achieve cost
savings while maintaining control over our
catalogue.
Spread of radio and
TV increases demand
for music
Du.ing recent years, the emergrng markels
ot Easlern Europe, Asra and Ldtin America
have been under consrderable economic
pressure. Even so. we have invested in
these marke6 to ouild strong and growing