DESPITE BEING home to chart-topping artists Kings of Leon, Beyoncé and Westlife, pre-tax profits at Sony Music Ireland fell sharply last year from €2.65 million to €784,000.

Accounts for Sony Music Entertainment Ireland for the year to the end of March 2011 show that revenues from continuing operations came in at €11.5 million, down from €15.8 million in the previous year.

The Irish unit of the Japanese consumer electronics and entertainment giant exited the business of DVD sales and distribution for the Entertainment One, HIT Entertainment and Clearvision labels. Revenues from these activities contributed €504,000 last year.

The directors note that while the “physical sales market” of CDs and DVDs continues to fall year on year, they expect “digital sales will continue to grow very strongly”.

“The company continues to monitor and reduce its costs base and feels that the company is well placed to deliver its level of profitability for the foreseeable future,” the accounts state.

Based on revenue and sales order value, and expenses as a percentage of revenue, the directors, Annette Donnelly and Michael Smith, say they are “satisfied” with the performance compared to Sony subsidiaries in other European countries.

The profit for the year was retained and no dividend was paid.

Sony Music Ireland had retained profits of €7.2 million as of March 31st last.

The music label had 15 employees over the course of the year, down one from 2010, and had staff costs of €1.4 million.

Sony Music Ireland paid corporation tax of €284,000, down from €507,000 in the prior year.

Sony's roster of artists includes X-Factorcompetitors such as this year's winner of the contest, Little Mix.