Untitled

]UK
2 Rest of Europe
I North Arneica
4Asa
lUK
2 Rest of Europe
3 Nodh America
5 Other
Total group operating profit for the
second half of f 171.5m was f7.0m ower
than last year including foreign exchange
losses of f7.1 m. EBITDA for the second
half was f20'!.4m, f6.4m lower than
last year including an adverse exchange
impact of f7.6m. Recorded Music
operating profit was down f 14.0m or
10.7ob at f 1 16.7m rairly as a result
of lower sales. Music Publishing operating
prof t was up f7.0m or 14.6a/o al f54.8m
reflecting the good U5 performance
and recent acquisitions.
Group finance charges for the year
of f50.3m were f5.9m higher than last
year (1999: f44.4m). This cost consists
of tr,,ro main elemen6: interest charges
on borrowings, and other interest and
fees. lnterest on bonowings was
unchanged year on yeat with improved
treasury management strateg es offsetting
the acquisit on driven increase in average
bonowings. Other nterest and fees have
increased by f6.3m, as the f7.1 m received
last year in conjunction with the loan to
HMV [/]edia Group was not repeated th s
year. lnterest cover at the end of the
year was a healthy 6.9 times.
ElVl has a 42.65% investment in Hl\4V
Media Group, the musrc and book retailer.
This investment ylelded a net contribut on
to pre-tax profits of f4.3m ('1999: f2.5m).
W thin th,s resuh, EM|S sha.e of joint
venture operating profit for the year
was down 8.0% to f27.7m with a nrong
performance from the HMV music
stores being offset by a disappointing
performance from the Wate6tone5 book
stores and the frrst year start-up losses from
the nternet operations of both businesses.
The fall in operating profits was, however,
more than offset by a 15.2% reduction
n joint venture finance charges to
f23.4rn.
fu a result of the increase in operating
profit, f nance charges and EMlS share
o{ its joint venture and associates' pretax
prof ts, adjusted profit before
tax (adjusted PBT - ie profit before tax,
amortisation and exceptionals) ncreased
by 8.1% to f245.4m (1999: f227]m).
As a result of the Windswept and Hit &
Run acquisitions, copyright arnortisatron
increased by f6.6m to f33.5m (1999:
f26.9m). Goodwill amortisation for the
year was f '1 .1m (1999: f0.4m). This
gave a total amortisation charge for
the year of f34.6rn (1999: f27 3m).
The operating exceptional charge
of 14.0m (1999: f ni ) consists mairly
of integration costs associated with the
Windswept Pacific acquisition.
During the year EMI sold tts shares in
GWR Group PLC (GWR), realising a profit
on the disposa of this investment in a
non