British music group EMI has warned that its annual profits will fall short of expectations due to a weak Christmas at its music business. It has also announced the departure of the music division's head and a plan to slash costs.
EMI said sales from EMI Music's portfolio of releases in the second half of the year had been lower than expected.
EMI, home to artists including Robbie Williams and Coldplay, rejected a bid approach in December, believed to be from private equity group Permira, and has been locked in a takeover battle with rival Warner Music on and off for the past six years.
The company said Alain Levy, chairman and chief executive of EMI Music since October 2001, and David Munns, vice-chairman of EMI Music, were leaving with immediate effect.
EMI also announced plans to make £110m of annual cost savings, with more than half that amount to be delivered in the year ending March 31, 2008. The savings will include an unspecified number of job cuts.
