Wednesday 13 December 2017

U2 find what they are looking for as profits soar

U2
U2

A FIRM owned by the members of U2 last year recorded profits of over €3.7m as it reaped the dividends of the band's blockbusting world tour and new music.

New accounts filed by U2 Ltd show that the firm recorded the profits after sustaining a loss of €1m in 2014 - a positive swing of €4.7m.

The buoyancy of the firm's business is underlined, with its cash pile more than doubling during the year - going from €2.86m to €6.89m.

Last year, U2 grossed $152.2m in box office receipts as more than 1.28 million fans across the globe paid to see the band perform. Box office receipts are split between artist, promoter and venue owner.

The average gross from each U2 gig was $6.92m - easily the most lucrative average gross out of any of the performers touring last year. The band played 76 dates in 22 cities.

The band's U2 Ltd firm is engaged in the creation, protection and licensing of intellectual property.

Numbers employed by the firm increased to nine, with staff costs increasing to €203,466.

The accounts show that the firm owed €6.65m under the heading of "employee current accounts" at the end of last year and these relate to U2 members.

Separate accounts for another U2 firm, Not Us Ltd show that its employees also include Bono, the Edge, Adam Clayton and Larry Mullen. That firm employs 10 and staff costs totalled €605,333 last year.

The amount paid to directors of Not Us Ltd last year totalled €189,156. At the end of December last year, the firm was sitting on accumulated losses of €12.65m.

This arises from €7.5m owed to subsidiary undertakings and €5.95m in amounts owed to related parties. The directors of Not Us Ltd are listed as all band members of U2.

The accounts - signed off by Paul Hewson (Bono) and Dave Evans (the Edge) - state that the company meets its day-to-day working capital requirements by way of loans from subsidiary undertakings and related party creditors, which are unsecured and interest free.

The note adds: "In addition, the directors have also extended loans to the company which attract interest at the prevailing rates. These parties have confirmed that they will provide additional funds if required."

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