Bumper sales of music by Rihanna and Emeli Sandi were not enough to prevent pre-tax profits at the Irish arm of music giant Universal plunging by more than 65 per cent to €205,085 last year.
Universal has some of the biggest stars in the world in its stable including U2, David Guetta, Lady Gaga and Madonna. However, CD sales at Universal Ireland Ltd declined by almost a fifth last year, contributing to an 11 per cent drop in revenues to €10.6 million.
Pre-tax profits fell by €391,430 to €205,085.
According to the directors’ report, the fall was due to difficult conditions “as a consequence of the economic recession combined with ... illegal downloading”.
“Despite a fall in turnover, the company maintained its leading market share in the Irish music market in 2012”.
CD sales accounted for 52 per cent of revenues at Universal Ireland, with royalties and licence fee revenues accounting for 42 per cent. Distribution fees made up the balance.
In spite of the downturn in the firm's fortunes, aggregate remuneration for the company's two directors, Mark Crossingham and Cathy O'Loughlin, increased by 15 per cent to €537,579.
