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EMI to remain soloist
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May 22, 2001: 5:33 a.m. ET
UK music heavyweight to pursue digital solo career after failer mergers
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LONDON (CNN) - After two failed merger attempts, Britain's EMI Group says it will pursue a solo musical career and focus on developing digital distribution.
The world's third-largest record company, with artists such as Radiohead, Janet Jackson and Mariah Carey on its roster, said adjusted pretax profit rose 5.7 percent to £259.5 million in the year ending March 31.
"These pleasing results, achieved in the context of a weak worldwide music market and in spite of the potential distraction of our merger discussions, demonstrate the fundamental strength and quality of EMI's businesses," said chairman Eric Nicoli in a statement.
But costs associated with the failed merger last year with Time Warner's music business amounted to £42.9 million.
EMI said there were no significant charges linked to the recent discussions with Bertelsmann Music Group. Both merger talks were scuppered by anti-competition concerns at the European Commission.
"Now that it is clear that, in the current regulatory environment, a merger with another major music company cannot be pursued at acceptable cost and risk, we will proceed as an independent, music-focused group," said Nicoli.
EMI's global market share increased 1.6 percentage points over the past year to 14.1 percent and the group was number four in the U.S. with a 10.8 percent share. Global turnover was up 12 percent to £2.7 billion.
The company said it would give particular emphasis to North America in the current year and exploit its expanding U.S. repertoire globally. Digital distribution of music represented a major long-term growth opportunity.
EMI said its participation in the MusicNet partnership with AOL Time Warner and Bertelsmann, announced last month, would create the world's largest online subscription music service. 
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