Operating profit jumped 80%.
A major restructuring of its independent label and the international success of its songwriters contributed to the significant profit jump for the U.K.'s Chrysalis Group plc in the financial year ending Aug. 31.
The downsizing of the music and radio group's Echo Label led to the slight fall in its total revenue to £131.9 million ($252 million) from £133.6 million ($255 million) during the same financial year.
The struggling indie label was effectively reorganized and turned into an incubator label designed for developing up-and-coming singer/songwriters signed to the group's publishing unit.
Yet, in slashing the losses caused by the label, the group reported an 80% jump in operating profit to £9.2 million ($17.6 million) compared with the same period last year, and a 63% rise in EBITA (Earnings Before Interest, Taxation and Amortization) to £10.8 million ($20.6 million).
Although revenues for Chrysalis' music division alone, comprising publishing, a label and wholesale distribution, slumped 8% to £67.9 million ($129.6 million), its EBITA leaped 61% to £5.6 million ($10.7 million).
Meanwhile, the publishing business benefited from numerous chart hits by artists such as Gnarls Barkley (Warner Bros.), Christina Aguilera (RCA), Thom Yorke (XL Recordings) and Will Young (S Records).
Chrysalis' Net Publisher's Share (NPS), the amount of royalties retained after songwriters and other publishers are paid, grew to £11.3 million ($ 25.6 million) from £10.7 million ($20.4 million).
"This level of international success is testament to the sustained level of investment in A&R that we have made over recent years, and gives us a substantial level of visibility into 2007 and beyond," the company said in the statement.
The company gave no details for the CD, DVD and books distribution division Lasgo Chrysalis, but it said the unit "has maintained the momentum from prior years with increased margins and profits."
In February, the company sold its 50% share in the recording studio Air Studios, gaining a small profit of £100,000 ($191,00). The sale helped reduce the group's net debt to £57.3 million ($109 million) from £60.4 million ($115 million).