Sony ready to rock following rise in profit
THE IRISH arm of Sony's record business increased its profits last year despite falling record sales.
According to accounts just filed with the company's office, Sony Music Entertainment Ireland reported a profit of €2.1m for the 12 months to the end of last March.
That compared to a €1.6m profit the company reported in 2008/9.
The company, which counts the likes of Pink and Kings of Leon amongst its acts, managed to increase profits despite a drop in turnover of nearly €2.5m to €17.3m.
Staff levels remained constant at 16 but payroll costs were cut by nearly a third to €1.4m. The profit has been transferred to reserves. No dividend was paid to shareholders.
Although the core record business has seen declining sales in recent years, the directors said they expected digital sales to continue to grow very strongly.
On Wednesday, the retailer HMV issued a profit warning and announced plans to close 60 stores across the UK as it battled declining turnover from consumers switching to digital downloads.
Illegal downloading, piracy and downward price pressure on recorded music have all led to a decline in sales but Sony say they "continue to monitor and reduce its cost base and feels the company is well placed to deliver its level of profitability for the foreseeable future".