Bosses at the Irish arm of music giant, Universal Music have credited the upsurge in the sales of vinyl records in 2020 as a factor in company revenues increasing sharply to €22.5m last year.
Universal Music Ireland Ltd counts Taylor Swift, U2 and Adele amongst its roster of stars and new accounts show that the company's revenues last year increased by 12.5% or €2.55m from €20.01m to €22.56m.
The directors state that revenues increased primarily "due to the significant resurgent growth in the popularity of vinyl records" and to the continued growth in subscribers to legal streaming music services.
Higher costs resulted in pre-tax profits last year plunging by 88% from €1.055m to €124,179.
The company's cost of sales increased from €14.12m to €18m while its administrative expenses reduced from €4.82m to €4.36m.
The directors state that the company maintained its leading market share in the Irish music market in 2020.
Universal Music Ireland Ltd also counts Justin Bieber and Coldplay amongst its stand out acts.
The directors state that the company faces risks and uncertainties, mainly as a result of the Covid 19 pandemic which could include but are not limited to the current world and local economic downturn and its effect on customer spending in all areas of the Irish music market and its effect on discretionary consumer spending in general.
The company last year paid out dividends of €500,000.
A breakdown of revenues show that royalty and licence fee income increased from €16.7 million to €19.2m with sale of goods increasing marginally from €3.3m to €3.35m
Numbers employed by the business last year remained at 19 with staff costs increasing marginally from €1.78m to €1.81m.
Remuneration, including pension payments for the firm's two directors, Mark Crossingham and Nick Younger last year declined from €665,988 to €645,327.
At the end of December last, the firm had accumulated profits of €1.9m.
