EMI Group cut its revenue and profit forecasts for the second time this year as music sales slump in the U.S.
EMI shares had the biggest slide in two years Wednesday after the company said full-year sales at its recorded music division would fall 15% and earnings would miss analysts' estimates. London-based EMI last month predicted a 10% sales drop.
The company, which recently released albums by Robbie Williams and Norah Jones, reported an "unprecedented level of market decline" and "an exceptionally high level of product returns." EMI ousted its top two music executives Jan. 12 after disappointing holiday sales. EMI has failed to produce bestselling U.S. albums and has lost revenue to piracy.
The shares fell 12% in London, giving the company a market value of 1.69 billion pounds ($3.3 billion).
The North American market for CDs has dropped 20% this year, EMI said, citing Nielsen SoundScan figures.