Music sales by Kylie, Ed Sheeran, Dua Lipa, and Coldplay last year contributed to pre-tax profits increasing by 62pc to €2.69m at the Irish arm of music giant, Warner Music.
New accounts filed by Warner Music Ireland Ltd show the revenues from music streaming and physical sales increased during the year.
Overall, revenues at the firm increased by 8pc from €14.92m to €16.14m in the 12 months to the end of September last.
The directors state that they believe that the company will continue to increase revenues.
Kylie’s 'Padam Padam' global hit was released in May of last year and spent eight weeks in the Irish Top 40 while Dua Lipa’s earning power was underlined by her UK-based Radical22 Live LLP generating revenues of £51.59m (€61.22m) in the 12 months to the end of March 2023.
Revenues at Warner Music Ireland Ltd last year were made up of direct sales of €14.92m and royalty and licence fee income of €1.2m.
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 €2.28m after incurring a corporation tax charge of €410,693.
The 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 dipped from €953,559 to €881,379.
Pay to directors increased from €305,170 to €344,374 made up of €310,307 in emoluments and €34,067 in pension contributions.
The firm’s cost of sales last year increased from €11.11m to €11.7m as distribution and promotion costs reduced from €726,297 to €674,486.
The firm’s administrative expenses reduced from €1.47m to €1.39m.
Other Irish artists signed up to Warner Music include The Corrs and Enya.
Shareholder funds at the firm totalled €9.5m 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”.
