Music sales by Irish acts such as The Script, Gavin James, Christy Moore and Picture This last year contributed to revenues at the Irish arm of music giants, Sony increasing by 5% to €20.2 million.
New accounts show that despite the rise in revenues, operating profits at Sony Music Entertainment Ireland Ltd decreased by 64% from €2.27 million to €807,000.
The company's pre-tax profits declined by 28% from €2.47 million to €1.78 million after the company benefited from interest income of €974,000 compared to €203,000 under that heading in 2023.
Revenues increased by €935,000 from €19.26 million to €20.2 million.
The company recorded the drop in profits as its costs of sales rose by 19% from €13.39 million to €15.92 million in the 12 months to the end of March last.
The directors state that they are confident that Sony Music Entertainment Ireland Ltd will continue to deliver strong results in a challenging market through a strong release schedule, aligning its business model to the changing market and controlling costs effectively.
On the risks facing the company, the directors state that the company considers the key risks to be physical market decline, uncertainty over the long term growth of the streaming market in addition to the strength of the release schedule.
Other Sony artists include Beyonce, Adele, Calvin Harris, Brittney Spears, Bruce Springsteen and the late George Michael.
The directors of Sony Music Entertainment Ireland are listed as Annette Buckley, Michael Smith and Ross Timmons and pay to directors increased from €491,000 to €553,000 made up €518,000 in pay and €35,000 in pension payments.
The numbers employed at Sony Music Entertainment Ireland last year increased by one to 13 with six employed in marketing and promotion, four in sales, two in management and one in administration.
Staff costs at the firm last year increased from €1.67 million to €1.74 million. While the company's cost of sales increased sharply, the firm’s administrative expenses decreased from €3.6 million to €3.46 million.
The firm recorded a post tax profit of €1.43 million after paying corporation tax of €344,000.
At the end of March last, shareholder funds at the firm totalled €23.04 million and this was made up of €10.89 million in accumulated profits and a share premium of €12.14 million.
Cash funds increased from €755,000 to €837,000.
Separate accounts for Sony Music’s UK arm show that it recorded pre-tax profits of £72.74 million in the 12 months to the end of March last.
This followed revenues at Sony Music Entertainment UK Ltd dipping marginally from £341.29 million to £340.67 million.
Reporting by Gordon Deegan
