U2 record label sees profits rise by €2m

THE record label behind U2 and rapper Eminem saw its Irish profits rise by almost €2 million last year.

Universal Music Ireland booked pre-tax profits of €8.7 million in the year to end December 2004, up 21% on the €6.8m made in the previous year.

Universal’s accounts, which have just been filed at the Companies Registration Office, show turnover rose from €20.2 million to €24.3 million. The increase in profits and turnover is the first for two years and indicates that the overall Universal group is recovering after a disastrous couple of years.

The accounts for Universal Music Ireland show that after paying out tax, a dividend of €7.5 million was paid to its parent company, €1.6 million more than in 2003.

The number of people employed by Universal remained the same at 17, though the annual wage bill fell from €1.31 million to €1.07 million.

Payments to the company’s two directors rose from €246,180 to €281,183.

The company said in the accounts that it was contesting a legal action taken against it, though it did not divulge the details of the action.

“While there is inevitable uncertainty regarding the outcome of the claim the directors are confident that its resolution will not have a material adverse effect on the financial position of the company.”

Universal Music is owned by the French conglomerate Vivendi, and is the world’s largest recording label. Its artists include U2, Ronan Keating, boyband McFly, rappers Eminem and 50 Cent and jazz sensation Jamie Cullum.

The Irish operations form a small part of the overall group. Last year Universal recorded worldwide sales of almost €5 billion.