Piracy blamed for Universal profits fall

THE record company behind U2 and Jedward has blamed piracy and illegal downloading for a fall in profits at its Irish operations.

According to accounts filed for Universal Music Ireland Ltd pre-tax profits dropped from €2.5 million to €1.9m last year.

The company made €10.3m from the sale of CDs, down from €11.2m the previous year.

It took in €3.4m in royalties and licence fees, down from €3.8m.

As in 2008, the company employed 17 people but staff costs have fallen from €1.5m to €1.4m. Directors’ remuneration was up from €434,615 to €503,503.

The accounts state the turnover decline in 2010 was due to difficult trading conditions as a consequence of the economic recession combined with piracy and illegal downloading.

“Despite a fall in turnover, the company maintained its leading market share in the Irish music market in 2010,” the accounts read.

External risks for Universal Music Ireland include the economic downturn and its impact on the Irish music market and challenges to that market from factors such as piracy and illegal downloading.

Revenue fell from €15.4m to €14.3m. The accounts show that dividends of €2.2m were paid in 2010, down from €4.7m the previous year.

Mark Crossingham and Cathy O’Loughlin are listed as directors in the accounts.

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. Artists signed to the label include Van Morrison, Take That, Snow Patrol and Rihanna.