Resurgence of vinyl records sees revenues rise at Irish arm of Universal Music
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The revival of vinyl records and continued positive growth in subscribers to legal streaming platforms were key drivers of rising revenue at the Irish arm of Universal Music Group, which increased by more than 15% in 2023.
Newly filed accounts by Universal Music Ireland Ltd show revenue at the company rose to €31.7m in the twelve months ending in December 2023, up from €27.3m in the previous year.
The company, whose principal activities include the marketing, sale and distribution of recorded music, maintained its leading market share in the Irish music market in 2023, it said in its financial statement.
Speaking on its uptick in revenue, Universal Music said this was underpinned by "continued positive growth in subscribers to legal music streaming services and also due to the significant resurgent growth in popularity of vinyl records."
However, growth in revenue was offset by rising administrative costs, which increased by more than 30% to €7m in 2023. Staff costs increased by almost 60% in the year, with wages and salaries totalling almost €2.2m.
The average salary paid by Universal Music's Irish arm exceeded €104,000. Directors remuneration almost doubled in the period, rising from €641,000 to €1.2m in 2023.
Rising costs saw operating profits at the record label's Irish arm drop from €1.75m to €1.2m in 2023, with the company's profit for the financial year falling by more than a quarter to €1.1m.
Looking forward, the company said it faces several risks, including the current world and economic downturn and its effect on consumer spending in all areas of the Irish music market and its effect on discretionary consumer spending in general.
Universal Music Group is the world's largest record label, boasting artists such as Billie Eilish, Harry Styles, Adele, Drake, and Taylor Swift.
In July, the company saw revenues rise by almost 9% in the first six months of 2024, underpinned by strong subscription growth and merchandising.
The company’s latest financial results show that it generated revenue of €5.5bn between January and June.
The largest increase was seen in merchandise sales which grew 29.7% followed by its music publishing division which grew 14.3%.
The company said that Taylor Swift was its top seller bolstered by the ongoing Eras Tour. She was followed by Morgan Wallen, Noah Kahan, Billie Eilish, and Ariana Grande.