EMI Group, the world's third largest music company, said it would post forecast-beating annual profits, but suspended its dividend payments after two profit warnings this year.
EMI said today it expects full-year revenues from its record labels arm to be down 15%, in line with predictions in February's profits warning.
EMI's net debt stands at about £910m, the group said on Wednesday.
'In view of the company's funding requirements, the board has decided to suspend dividend payments until the benefits of the restructuring process have been fully realised,' EMI said in a statement.
The group did not give an update on the prospects of a merger with US rival Warner Music Group.
Last year Warner, the world's fourth-largest music company with artists such as Madonna and Red Hot Chili Peppers, offered 320p a share for EMI, but downgraded that to 260 pence per share at a second attempt after EMI issued its second profit warning in as many months in February.
The two music firms have made several attempts to strike a deal over the last seven years.
