Hozier and Taylor Swift Boost Universal Music Ireland’s Profits and Revenues Through Music Sales
Music sales by renowned artists, including Hozier and Taylor Swift, significantly impacted Universal Music Ireland’s financial performance. In the past year, the company reported a 20% increase in pre-tax profits, reaching €1.56 million. This surge followed a 2% rise in revenues, which climbed from €31.67 million to €32.4 million in 2024.
Key Contributors to Revenue Growth
A variety of factors drove this financial success. The soundtrack to the popular musical “Wicked” contributed notably to revenue increases. Additionally, Universal Music Ireland has an impressive roster, featuring stars like Adele, U2, Sabrina Carpenter, Justin Bieber, Christy Moore, and Billie Eilish.
- Pre-tax profits: €1.56 million, up by 20%
- Revenues: €32.4 million, up by 2%
- Significant sales from “Wicked” soundtrack
Market Performance and Trends
The directors attributed the revenue increase primarily to the continued growth in subscriptions to legal music streaming services. The resurgence in popularity of vinyl records also played a role in enhancing earnings. Universal Music Ireland maintained its leading market share in the Irish music market throughout 2024.
Financial Highlights
- Dividend payment: €1 million (down from €1.5 million in 2023)
- Cost of sales: Increased from €23.3 million to €24.68 million
- Administrative expenses: Decreased from €7 million to €6.08 million
- Staff costs: Dropped by 21% from €3.08 million to €2.42 million
The reduction in staff costs was primarily a result of decreased directors’ pay. Mark Crossingham and Nick Younger saw their combined remuneration decrease by 27%, down to €848,130.
Overall Financial Position
As of December last year, Universal Music Ireland had shareholder funds totaling €3.5 million, which included accumulated profits of €3.01 million. The reported post-tax profits were €1.35 million, following a corporation tax charge of €214,361.
While the company thrives, the directors acknowledged several risks. Economic downturns both globally and locally may impact consumer spending across the Irish music market and discretionary spending more broadly.
Global Perspective
On a larger scale, Universal Music worldwide saw a 6.5% revenue rise, amounting to €11.83 billion. Notably, subscription and streaming revenues made up over half of this figure, totaling €6.03 billion. Additionally, physical music sales contributed €1.35 billion to the overall revenue.
In conclusion, Hozier, Taylor Swift, and other artists have helped boost Universal Music Ireland’s profits and revenues through strong music sales and streaming performance, positioning the company for sustained growth in the music industry.
