Golden Discs records losses of €73,000

LOSSES AT Golden Discs narrowed significantly last year to €73,000, according to results published yesterday. This compared with losses of €710,000 in 2010, and €1.6 million in 2009 for Golden Disc Group Ltd.

Turnover in the year to the end of June 2011 declined by 4.4 per cent to €10.8 million, the group said. With CD sales in Ireland declining by 11 per cent last year and DVDs by 13 per cent, Golden Discs said it had outperformed the market.

Stephen Fitzgerald, managing director of Golden Discs, said: “Continued economic uncertainty and related negative consumer sentiment are the primary causes for the sales decline. Unrealistically high property costs and local rates charges continue to challenge the company’s cost base.”

For 2012, Mr Fitzgerald said lower pricing on “new release” CD and DVD products coupled with “compelling promotional activity” was driving volume. DVD box sets were also performing strongly, as were new product lines like T-shirts and accessories.

Golden Discs emerged from examinership in May 2009 following a €250,000 investment. It is one-third owned by Mr Fitzgerald, Stephen Fitzgerald and Capeview Ltd. In spite of tough conditions, it recently opened a shop in Athlone and hopes to add another by year-end to bring its total to 16. It also operates a download store – Goldendiscs.ie