HMV closure drags Universal into red in Ireland

The closure of HMV’s store network helped drag the Irish arm of music label Universal into the red last year.

Newly-filed accounts for Universal Music Ireland — which has the likes of U2, Ariana Grande, Taylor Swift, and Lionel Richie on its roster — show the company plunged into the red with pre-tax losses of €642,304 last year. It had generated a pre-tax profit of €1.6m in 2015.

Revenues last year fell by 17% to €10.9m, hurt by plunging sales of CDs which halved to €3m. Management said a primary cause for the revenue decline was “a major customer” (understood to be HMV) “ceasing to trade in the Republic”.

HMV moved online in the Republic last year after closing its four remaining physical stores. Universal said it managed to offset some of the drop in CD sales by increasing its revenues from royalties and licence fees from €6.6m in 2015 to €7.88m.

It said it maintained its leading share of the Irish music distribution market last year. The company paid a dividend of €1.2m to its US parent last year and said it intends to recommend payment of a dividend of any retained earnings available for distribution.

As of the end of last year, Universal’s Irish subsidiary had accumulated profits of €840,231 and cash of €383,748.

The company employed 18 people last year and paid out €1.25m in wages. Its two directors — Mark Crossingham and Nick Younger — received combined pay of €459,913, down by €50,000 on the previous year.