U.K. music group Chrysalis enjoyed a financial third quarter 5.2% rise in its income from royalties on the prior year quarter, according to an interim management statement released today (Aug. 19).
Company performance was in line with the board's expectations, said the statement, which forecast a year-on-year increase in consolidated net publisher's share for the year ending Sept. 30.
The British company identified the U.K. No. 1 album "Immersion" (Warner Bros) by Pendulum and the presence of Chrysalis published writers Nerina Pallot and Fraser T. Smith on the U.K. chart-topping Kylie Minogue set "Aphrodite" (Parlophone/EMI) as key drivers in its improved performance.
A number of high profile synchs from the Chrysalis catalog, including Blondie's "Rapture" in the film "Sex and The City II" and the Yeah Yeah Yeahs track "Gold Lion" in an Apple iPad promo, were also attributed as driving revenue in Q3.
Earlier this year, Chrysalis PLC acquired the First State Media Group business -- which operates under the brands of S2 Songs and State One Music in seven countries and controls a catalog with over 45,000 music copyrights -- for £11 million (then U.S. $16.5 million). As a result, the company's net debt as of 30 June 2010 was stated as £18.7 million ($29.3 million).
Chrysalis funded the acquisition through its existing loan facilities, which still has a further £22.4 million ($35 million) in availability for future acquisitions. The company says that it is currently considering a number of new acquisitions.
According to today's figures, the net publisher's share (NPS) - a revenue measure for the amount of royalties received minus those royalties due to performers or writers - was up 15.6% for the prior year nine-month period. NPS was also up 15.6% for the nine months on a constant currency basis. Chrysalis did not disclose the amount of profit.
New releases from Chrysalis Music Publishing acts in Q4 include a new album from singer-songwriter Ray LaMontagne and the recently released "100 Miles From Memphis" by Sheryl Crow, which entered the Billboard 200 at No. 3.
Chrysalis acquired the Richard Marx catalog in June 2009 - an acquisition that the company says continues to perform to plan.
"I am pleased that our performance in the year to date continues to be on track," said Jeremy Lascelles, chief executive, in a statement.
"Chrysalis continues to outperform the market, and to defy wider music industry turmoil," he continued.