EMI Group said this morning it expected first-half profits to climb due to higher revenues and cost savings from a restructuring programme.
The company, the world's third-largest record company, said it had increased market share in the global music market on the strength of releases by artists such as Coldplay, Gorillaz and the Rolling Stones.
The EMI Music division was on track for a 4.5 per cent increase in first-half revenues on a constant currency basis. Operating margins were expected to increase by about one percentage point.
EMI Music Publishing was expected to show 5.5 per cent revenue growth on a constant currency basis, with operating profit roughly flat compared with the prior year, due in part to higher share-based pay and pension charges.
Digital revenues, including ringtones and online services, "continue to enjoy very strong growth year-on-year," the company said.
The company's overall profit before tax, amortisation and exceptional items was expected to increase by 9 per cent, with full-year results on track to deliver on the company's own expectations.
Analysts on average expected the company's pretax profits to increase nearly 17 per cent to £165.8 million, according to a poll of 13 brokerages by Reuters.