The world's third largest record company EMI today said it was on course to deliver higher profits, buoyed by stronger revenues and cost savings.

For the six months to September 30, EMI said profits would grow by 9%. Despite a weaker than expected recorded music market, revenues had grown thanks to successful releases by artists such as Paul McCartney, Keith Urban and KT Tunstall, the company said.

EMI's trading update contrasted with its full year profits in May, which fell 13% to £141.9m after albums from Coldplay and the Gorillaz, two of the company's biggest groups, were delayed.

EMI has a 13.4% share of the £33.6bn recorded music market, behind Universal and Sony BMG. However, it has struggled to make headway in the difficult US market. Like other music companies, EMI has been hit by illegal music downloads, but the company has stabilised under its chief executive and chairman, Alain Levy.

Mr Levy has slashed costs and dramatically reduced the number of artists on EMI's register. The strategy of concentrating on fewer acts has worked well, with acts like Coldplay and Norah Jones among the most successful of recent years.

"Higher revenues, together with cost savings from a restructuring programme announced in March 2004, are expected to more than offset higher marketing costs due to a heavier release schedule," EMI said in a statement.