The growth in income from music streaming contributed to pre-tax profits almost doubling to €546,865 at the Irish arm of music giant Warner Music last year.
Warner Music counts all-conquering Ed Sheeran in its roster of stars and new accounts for Warner Music Ireland Ltd show the company enjoyed the 88 per cent increase in pre-tax profits after revenues increased by 7 per cent from €10.86 million to €11.59 million in the 12 months to the end of September last.
According to the directors’ report, revenues increased during the year largely due to the growth of music streaming.
Sounding an upbeat note, the directors said they believed the company will continue to grow turnover.
Other artists signed to the label include Dua Lipa, Rita Ora, Noel Gallagher’s High Flying Birds, Kylie, Jess Glynne and Coldplay.
On the firm’s future developments, the directors say the company “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”.
A breakdown of the firm’s revenues show that direct sales increased by 3 per cent from €9.87 million to €10.18 million while income from royalties and licence fees increased by 42.5 per cent from €988,797 to €1.4 million.
Directors’ pay increased from €400,103 to €412,843. Shareholder funds totalled €2.24 million.
The company’s operating profits increased by 75 per cent from €330,577 to €580,411 and interest costs of €33,548 last year produced a pre-tax profit of €546,865.
The firm recorded post tax profits of €455,395 after corporation tax of €91,470 was paid.