Tokyo-based label Columbia Music Entertainment (formerly Nippon Columbia) recorded a consolidated net loss of ¥2.1 billion ($18.3 million) in the year ending March 31, 2006, compared with the pre
Tokyo-based label Columbia Music Entertainment (formerly Nippon Columbia) recorded a consolidated net loss of ¥2.1 billion ($18.3 million) in the year ending March 31, 2006, compared with the previous year's profit of ¥157 million ($1.5 million).
The company says the loss was due to several one-time non-recurring charges, including costs incurred in moving its head office, inventory disposal losses and the liquidation of its CD and DVD-pressing businesses in Japan and the United States.
Columbia's consolidated sales totaled ¥28.9 billion ($253.2 million), down 11.5% from the previous year, largely due to the reduction in income from sales by CME's disc-pressing plants.
Strong-selling CME acts during the year included female vocalists Kaela Kimura and Yo Hitoto and male "enka" ballad singer Kiyoshi Hikawa.
The company said its digital sales tripled during the year, although it did not provide precise figures.
"We are very pleased that CME has accomplished its major long-term goals of improving its balance sheer and focusing on its core growth business: music and entertainment content, marketing, and distribution," said CME chairman Strauss Zelnick in a statement.
For the year ending March 31, 2007, CME predicts consolidated sales of ¥28 billion ($249.7 million) and a net profit of ¥175 million ($1.6 million).