Music sales by Ed Sheeran, Dua Lipa, Charlie XCX and Coldplay last year contributed to pre-tax profits increasing by 21% to €3.26m at the Irish arm of music giant, Warner Music.
New accounts filed by Warner Music Ireland Ltd show that the increase in music streaming offset the decline in physical sales during the year.
Overall, revenues at the firm increased by 5% from €16.14m to €17.01m in the 12 months to the end of September last.
The firm is engaged in the distribution of music and music-based content to the Irish market via digital channels as well as physical formats.
The directors state that they believe that the company will continue to increase revenues.
Revenues at Warner Music Ireland Ltd last year were made up of direct sales of €15.69m and royalty and license fee income of €1.32m.
The company’s operating profits increased by 13% from €2.36m to €2.67m and an 81% increase in interest income to €589,443 resulted in pre-tax profit of €3.26m.
On the firm’s future developments, the directors state that the firm “is embracing the spectrum of opportunities presented by digital technology to deepen the connection between fans and artists”.
They state that “creating and developing new business models to accelerate its business transformation remains a top strategic imperative”.
The firm last year recorded a post tax profit of €2.79m after incurring a corporation tax charge of €476,290.
Numbers employed remained at 12 last year made up of five in promotion, advertising and publicity, four in selling and distribution and three in administration.
Staff costs last year increased from €881,379 to €956,249.
Pay to directors remained at the same level at €344,802 made up of €309,290 in emoluments and €35,512 in pension contributions.
The firm’s cost of sales last year increased from €11.7m to €12.24m as distribution and promotion costs reduced from €674,486 to €598,366.
The firm’s administrative expenses increased from €1.39m to €1.48m.
Shareholder funds at the firm totalled €12.3m at the end of September last.
The directors state that “net sales, operating income and profitability, like those of other companies in the music business, are largely affected by the number and quality of music that the company releases, the release schedule and more importantly, the consumer demands for these releases”.
Reporting by Gordon Deegan
