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 Billboard.biz.