Profit of €6.2m for U2’s record group

THE record company behind U2 saw its Irish pre-tax profits increase from €4.6 million to €6.2m last year.

Turnover, however, fell slightly from €21.1m to €19.4m, which the company said was due to the worsening economic conditions, particularly towards the end of the year.

The company, Universal Music Ireland, is a subsidiary of the Universal Music Group, which is based in New York but is itself part of the French Vivendi group.

It is the world’s largest record label and its list of artists spans musical divides, ranging from U2 to Bon Jovi to Ronan Keating.

The principal activity of the company in Ireland is the sale and marketing of compact discs and music DVDs, along with a growing digital business.

The accounts read: “Despite a fall in turnover the company maintained its leading market share in the Irish music market in 2008 and is well positioned to protect future profitability due to the generation of new income streams and continued increases in digital revenues.”

External risks for the company include the economic downturn and its impact on the Irish music market, as well as challenges to that market from factors such as piracy and illegal downloading, according to the accounts just filed.

The company paid a dividend in the year of €4.2m and it is the directors’ intention to recommend payment of a dividend, in due course, of the entire profit for the year.

There were 17 people employed by the company last year, down two from 2007. Staff costs still increased from €1.46m to €1.62m.

Universal Music Group also owns a music publisher, Universal Music Publishing Group, which became the world’s largest following the acquisition of BMG Music Publishing in May 2007.