Profits at Warner Music's Irish subsidiary increase by 70%

 

WARNER MUSIC Ireland grew its profits by 70 per cent to €713,615 last year, according to accounts filed with the Companies Office.

The Irish subsidiary of the international music label, whose artist list includes Enya, Eric Clapton, Green Day and Paulo Nutini, saw turnover for the year ended September 26th, 2008 slip to €10.26 million, from €10.54 million a year earlier. However, this fall was offset by a reduction in the cost of sales from €6.45 million in 2007 to just below €5.7 million, coupled with a €300,000 fall in distribution and promotion costs.

No dividend was paid during the year, and the profit was carried forward in reserves.

The company’s directors – Patrick Vien, Simon Robson, Padraic Dever and Pat Creed – shared total remuneration of €241,213, down slightly from the previous year. Mr Vien resigned last September and John Reid was appointed as a new director on October 24th.

An average of 10 people were employed by the company during 2008, and total staff costs came to €593,057 for the year.

No one from the label was available to comment on the accounts.

Warner is one of four major record labels that has taken action against internet service providers (ISPs) in a bid to stop illegal downloading of music. An out-of-court settlement was reached with Eircom in January, under which the telco agreed to cut off customers found to be repeatedly downloading illegally.

However, other ISPs, BT Ireland and UPC, have refused a similar request from the labels.