Chrysalis Group, the London-based independent music company, reports operating profit more than tripled in the six months ending Feb. 29, thanks largely to another strong performance at its radio unit
Chrysalis Group, the London-based independent music company, reports operating profit more than tripled in the six months ending Feb. 29, thanks largely to another strong performance at its radio unit.
Group operating profit grew to £3.7 million ($6.5 million) during the period, up from £1 million ($1.7 million) in the corresponding period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) doubled to £5 million ($8.86 million).
Chrysalis' radio division -- which includes two hot AC-format Heart stations and the dance-formatted Galaxy station -- outperformed the market, posting 23% growth in revenue to £33.3 million ($59 million) during the six months. Overall sales, however, were flat at £84.6 million ($149.9 million), as the group's gains at radio were offset by respective revenue declines in its music and book divisions of 8% and 16%.
Chrysalis Music, which comprises the company's music publishing company, Lasgo Chrysalis' U.K. wholesale distribution activities and the Echo record label, generated revenues of £36.8 million ($65 million), down from £40 million ($70 million). The company cites vagaries in the broader global recorded music industry, and an absence of major new releases during the period.
In its publishing activities, Chrysalis singles out the "significant mechanicals income" amassed by OutKast's hit double-album "Speakerboxxx/The Love Below" (LaFace/Zomba), which it says is approaching 6 million worldwide sales.
"The considerable success currently enjoyed by OutKast, as well as ongoing solid performances across the other areas of our publishing catalog and other music companies, gives us confidence that the division will meet full-year expectations," comments chairman Chris Wright.
Stock in Chrysalis Group closed down 5.39% to 193p on the London stock exchange.