Profits nearly halved at music giant Warner’s British arm last year after its artists were forced to cancel tours due to the pandemic.
Warner Music UK – home to Dua Lipa and Liam Gallagher – saw profits plunge 46 per cent to £25million in the year to September 25, new accounts reveal.
Sales of £214.6million were down 20 per cent on the prior year.
Don’t look back in anger: The label blamed reduced revenues from tour merchandise, live shows and broadcast
The label blamed reduced revenues from tour merchandise, live shows and broadcast. An accounting change also retrospectively increased revenues the year before.
However, Warner noted that it had benefited from lockdown savings in travel, entertainment and industry events and said that streaming revenues have been ‘resilient’.
The update came as the three music giants – Universal, Sony and Warner – came under scrutiny in Westminster. Following a six-month inquiry, a committee of MPs warned last week that artists were seeing ‘pitiful’ returns from streaming of their work. Warner Music UK is part of the Warner Music Group, which was floated last year in the US.
The Nasdaq float, which valued WMG at $12.8billion, saw Britain’s richest man Sir Len Blavatnik cash in $1.9 billion in shares. The group last year fell into the red with a $229million loss, with revenues flat at $4.5billion.
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