Concert promoter expects earnings to reach €9.4m
The MD of MCD was yesterday commenting on accounts just filed by the Academy Music Group to Companies House in the UK that recorded earnings before interest, tax, depreciation, amortisation (EBITDA) of £6.8m last year.
Mr Desmond and Live Nation jointly hold a 56% share in the business that operates from 19 venues across the UK, including the O2 Brixton Academy.
Revenues at the UK-based, Academy Music Holdings Ltd (AMHL) dipped slightly from £36.6m to £36m in the 12 months to the end of December last (2012) with the group’s pre-tax loss decreasing marginally to £1.41m.
Mr Desmond said that 2.5 million people paid to attend events at the 19 venues last year.
Mr Desmond said: “They’re good results and in the current climate, we are very happy with them. We are pleased and this year we are projecting earnings of £8m. The UK operation is doing particularly well, but there is always room for improvement.
Mr Desmond added: “Some of the venues are doing really well this year and this is helped by a lot of bands touring at the moment. The ‘live’ music business is good right now in the UK.”
Mr Desmond said that the group recently renewed its sponsorship deal with O2 for five years to 2018.
He said: “We are looking to expand and looking at different sites and will maybe add one or two.”
Mr Desmond’s Irish MCD business is not required to file annual accounts as it has unlimited status.
The pre-tax loss last year at AMHL takes account of combined non-cash depreciation and amortisation costs of £4m along with interest payments of £4m.
The group’s operating profit remained at £2.6m.
According to the directors’ report, “the group continues, under its updated financing facility, to achieve targets set under the group’s business plan, with an outlook for significant growth.
“The group’s strength is demonstrated in the cashflow statement which shows cash inflows from operating activities of £8.3m which more than covers debt servicing outflows of £3.4m.”
The group’s cash increased from £5.3m to £7.6m during the year. Numbers employed by the group last year decreased from 370 to 340 with staff costs decreasing from £7.2m to £7.1m.
