Friday, October 15, 2010

Profits at record company of U2 and Ronan Keating plunge to €2.5m

THE record company behind U2 and Ronan Keating saw its Irish pre-tax profits plunge from €6.2 million to €2.5m last year.

According to accounts filed for Universal Music Ireland, dividends of €4.7m were paid in 2009, up from €4.2m in the previous year.
Mark Crossingham and Cathy O’Loughlin are listed as directors in the accounts.

The company made €11.2m from the sale of CDs, down from €14.6m the previous year.

It took in €3.7m in royalties and licence fees, down from €4.2m in 2008.

As in 2008, the company employed 17 people but staff costs fell from €1.6m to €1.5m. Directors remuneration was down from €708,399 to €434,615.

The accounts said the turnover decline in 2009 was primarily due to worsening economic conditions, particularly towards the end of the year.

"Despite a fall in turnover, the company maintained its leading market share in the Irish music market in 2009 and is well positioned to protect future profitability due to the generation of new income streams and continued increases in digital revenues," the accounts read.

According to the accounts, external risks for the company include the economic downturn and its impact on the Irish music market and challenges to that market from such factors as piracy and illegal downloading.

Revenue fell from €19.4m to €15.4m.

Universal Music Ireland is a subsidiary of the Universal Music Group, which is based in New York but is itself part of the French Vivendi group.

It is the world’s largest record label and its list of artists spans musical divides and includes Van Morrison and Bon Jovi.

source : by Niamh Hennessy

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