Coldplay puts EMI in a spin

SHOCK delays to the release of albums from hit bands Coldplay and Gorillaz will put a massive dent in EMI's profits this year, the music giant warned today.

The group also warned that other album sales had been lower than expected and said that is likely to continue through February and March.

It said overall sales from the music division are now likely to be 8% to 9% lower than last year. In the 12 months to last March, EMI's music sales were 2% down at £1.74bn.

With margins likely to be unchanged, this means the group's pre-tax profit for the year ending next month is likely to be around £138m, against last year's £324m and well below analysts' forecasts for between £161m and £175m.

{1}Alain Levy, chairman and chief executive of the music division, said: 'We generated good initial sales from our second-half major releases but, given recent re-order levels and the revised timing of these two major albums, we will now not maintain market share for the full financial year.

'While progression in profitable market share is always our aim, creating and marketing music is not an exact science and cannot always coincide with our reporting periods.'

Coldplay have a reputation for problems in the recording studio, with talk of the group breaking up during recent sessions. This should be their third album, the follow up to the multi-million seller A Rush of Blood to the Head.