Sunday 26 February 2017

Profit jump 50pc to €9m at Desmond firm

Gordon Deegan

Music promoter Denis Desmond pictured with Bono in 2007
Music promoter Denis Desmond pictured with Bono in 2007

Pre-tax profits at the UK-based entertainment group co-owned by concert promoter, Denis Desmond rose by 50pc to £6.4m (€9m) last year.

Academy Music Group (AMG) enjoyed the large jump in pre-tax profits in spite of revenues declining marginally by 0.5pc to £32.12m.

Mr Desmond heads up MCD Promotions here and through his joint venture with Live Nation, the LN Gaiety Holdings entity, he owns 26pc of AMG.

AMG has been generous in its dividends to its owners over the past number of years, paying out £26.8m (€37.75m) between 2011 and 2013 with none paid out last year.

Next Tuesday, the all-conquering Hozier plays a sell-out gig at one of the business's 19 venues across the UK, the O2 at Shepherd's Bush Empire.

The firm is the leading owner and operator of live music venues in the UK and other venues under its banner include the O2 Academy Brixton and venues across the UK include the O2 Academy in Leicester. AMG venues in 2015 are expected to host 3,000 events attracting up to three million customers.

Last year, AMG's operating profits increased by 59pc to £6m and this followed a 2pc rise in operating profits in 2013.

The jump in profits arose chiefly from AMG cutting back on its administrative costs from £24.7m to £22.6m

Income from fixed asset investments totalling £310,000 and net interest receivable of £374,096 added to the firm's profits. Numbers employed fell from 279 to 260 with staff costs increasing marginally to £6.2m.

The company's balance sheet remains very strong with accumulated profits of £33.25m and cash of £5.2m.

The profits last year take account of operating lease rentals of €2.24m and non-cash depreciation costs of £2.2m.

Irish Independent

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