Sony Music UK Revenues Slip, Pre-Tax Profits Climb With Help From Simco

Sony Overtaking Universal in Market Share? It Already Happened in March

Sony Overtaking Universal in Market Share? It Already Happened in March

In the 12 months leading up to March 31 2012, Sony Music U.K. revenues fell 2.4% year-on-year to £191 million ($307 million), according to the company's latest financial filing at Companies House.

In the same period, Sony Music U.K.'s pre-tax profits grew 128%, rising from £6.6 million ($10.6 million) to £15.2 million ($24.4 million). A geographical analysis of turnover revealed that U.K. sales generated the lion's share of revenue, accounting for £148.5 million ($238.8 million) with revenues from "rest of world" amounting to £42.6 million ($68.5 million).

Turnover resulting from "production, promotion and recordings" amounted to £138 million ($221.9 million), down from £144.8 million ($232.8 million) the year previous. Meanwhile, "royalty income" generated £53.1 million ($85.4 million) - up from £51 million ($82 million) in 2010/11.

In a separate filing by Simon Cowell's music, television and film company Simco, which trades as Syco Entertainment and is 50% owned by Sony Music Entertainment, turnover climbed from £28.1 million ($45.1 million) to £54.7 million ($87.9 million). Simco's pre-tax profits were up 38% year-on-year to £32.6 million ($52.4 million).

As recently reported in The Guardian the fall 2011 launch of "The X Factor" in the U.S. is largely credited with boosting Simco's strong pre-tax figures. The Guardian reports that Simco's turnover in the U.S. grew from £3.2 million ($5.1 million) to £22.9 million ($36.8 million) in the 12 months leading to March 31 2012, with U.S. operations now contributing almost 42% of the company's total turnover, as opposed to 11% in the corresponding period the previous year.

The domestic and international success of Syco and Sony artists One Direction, Paloma Faith, The Vaccines and Neil Diamond helped boost the companies' pre-tax performance.

A spokesperson for Sony Music U.K. declined to comment when contacted by