Sony Music Ireland losses double
Hits for One Direction were not enough to stop losses at the Irish arm of music giant Sony from more than doubling last year.
Illegal downloading, physical piracy, downward pressure on recorded music, and growing competition for discretionary spending have all fed into the decline in physical recorded sales, according to company accounts filed for the business.
Losses at Sony Music Entertainment Ireland Ltd more than doubled from €429,000 to €862,000 in the 12 months to the end of March 2013, according to new accounts filed for the company.
Revenues fell by 14pc from €8.68m to €7.49m and pre-tax losses increased even more sharply from €31,000 to €776,000.
Net interest income plummeted to €86,000 last year from €398,000 recorded in 2011.
The accounts, lodged with the Companies Office, show that the loss last year takes account of non-cash amortisation of intangible assets costs of €1.18m.
According to the directors' report: "Although, the physical sales market continues to fall year on year, the directors expect that digital sales will continue to grow very strongly."
The directors state that "the company is a member of the Irish Recorded Music Association, which actively fights against illegal downloads and piracy".
The directors are listed as Annette Donnelly, Michael Smith and Ross Timmons. According to the accounts, aggregate remuneration for directors last year increased from €396,000 to €413,000.
The firm's shareholder funds fell from €19.18m to €18.3m, including accumulated profits of €6.1m.
Staff costs were cut from €1.29m to €1.19m last year.