Terra Firma, the venture capital group that owns EMI, injected £84 million of cash into the music major in the first half of the year - including £16 million of cash to ensure that the struggling company met its banking covenants.

The firm said that it made the payment as an "equity cure" because its recorded music division did not generate enough profit, at £59 million in the first half, relative to its debts.

That was despite the fact the half year to September 30 saw hits from Coldplay and Katy Perry, helping underlying profits swing from a £12 million loss a year ago to the £59 million profit this year.

The remaining £68 million came from a £250 million fund raised from external investors, including Canadian pension funds, aimed at covering restructuring costs incurred by a massive redundancy programme aimed at saving £200 million annually.

Nevertheless, Lord Birt, the former BBC Director-General, who is chairman of EMI's holding company Maltby, said that the half year report "gives grounds for qualified optimism about the progress EMI is making".

In addition to the cost cuts, Lord Birt highlighted the impending launch of a Beatles version of the Guitar Hero game, T-shirts sold in Sainsbury's with lyrics from songs written by EMI writers as examples of how the company can grow revenues beyond CD and download sales.

Overall EMI lost £155 million in the half to September 30, an improvement on last year's £324 million deficit, although revenues were up 10 per cent at £737 million. Underlying profits for the group, including its successful music publishing division, which handles songwriters, were £130 million, but these were not enough to cover the £150 million interest bill or other costs.

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