Australian CD, DVD and fashion retailer Brazin has posted a six-fold year-on-year rise in net profit to A$12.6 million ($8.82 million) for the 12 months to June 26.
Australian CD, DVD and fashion retailer Brazin has posted a six-fold year-on-year rise in net profit to A$12.6 million ($8.82 million) for the 12 months to June 26. In the corresponding period last year, the retailer reported net profit of A$2.05 million ($1.4 million).
Brazin's sales during the year rose 3.6% to A$390.8 million ($273.56 million) while earnings before tax and interest (EBIT) improved by 58% to A$20.45 million ($14.2 million). Its Entertainment Australia division, which includes the 234-store Sanity and Virgin chains, recorded sales of $267.3 million ($188.82 million), due largely to its emphasis on the DVD market.
Music has seen "a slow improvement," comments Brazin CEO and managing director Greg Milne, who took over the company's helm from founder and CEO Brett Blundy in February. Milne adds the group is "positive" about the prospects for the coming year.
As the company reported its financials on Monday (Aug. 23), Milne urged record labels to get back to basics when it comes to promoting the business, and to stop blaming its woes on downloading. "We don't think downloads have ever affected music in Australia, it is just being used as an excuse to cover-up other issues," Milne says. "The industry has got to stop putting its head in the sand and saying that it is external forces that is killing us; it's got to start looking how we can grow this business."
Milne has proposed a strategy in which labels encourage their acts to take part in promotions, such as in-store appearances, and for their advertising to highlight where a new album can be bought.