Warner/Chappell UK’s MD Mike Smith has plenty to be happy about in the publisher’s latest results.
According to financial documents lodged at Companies House, revenue at Warner/Chappell UK increased by 26% to £85.03 million in the year ending September 30, 2017. That coincides, roughly, with Smith’s first 12 months in the role during which time he’s been busy signing artists, songwriters and catalogues.
While the results may partly reflect the performance of the publisher prior to Smith’s arrival, Warner/Chappell has been on a roll including recognition at the BRITs and Ivor Novello Awards.
Domestic income increased by £13.1m, which was “primarily driven by a rise in digital income” along with increases in mechanical, performance and theatrical revenue.
The company noted that “new digital platforms are now starting to deliver increased monetary benefits to music publishers which significantly offset the weakening traditional markets”.
It also warned of “new entrants and business models” providing competition to traditional publishers, while the risks to the business of Brexit were “too early to assess”.
“It seems unlikely, however, that British music will cease to be purchased, broadcast or performed in Europe simply because of the Brexit decision,” the strategic report stated.
Overseas income at Warner/Chappell increased by £4.2m, in part because of favourable foreign exchange movements.
Operating profit increased by 33% to £12.9m, though profit before taxation decreased by 21% to £13.3m as a result of prior year property sale. Warner/Chappell said the profit performance was helped by a decrease in administrative expenditure.
Net current assets have increased by 93% to £23.2m. Royalty advances in 2017 were £18.3m, down from £20.3m in 2016.