The sustained surge in music streaming and the appeal of Abbey Road Studios to top-tier artists have contributed to Virgin Records seeing its profit more than double during its most recent financial year. The firm has announced a pre-tax profit of £76.9m for 2023, a significant increase from the £37.2m recorded in 2022.
As per the latest accounts filed with Companies House, Virgin Records' turnover also saw an uptick, rising from £72m to £76.9m over the same period. The company attributes this growth in turnover to a rise in demand for streaming services, coupled with an increase in recording studio activity and retail sales at its Abbey Road Studios.
Virgin Records was established in 1972 by Sir Richard Branson, Simon Draper, Nik Powell, and Tom Newman. It achieved success after signing renowned artists such as Phil Collins, Janet Jackson, Lenny Kravitz, the Sex Pistols, and Culture Club.
READ MORE: {}
The company was sold to Thorn EMI in 1992 and has been under the ownership of Universal Music Group since 2012.
Turnover from product sales at Virgin Records increased from £31m to £32.5m, while royalties climbed from £41m to £44.4m. In the 海角视频, the company's turnover expanded from £45.5m to £48.9m and from £9.7m to £10.8m in the rest of Europe, as reported by .
While Virgin Records' US turnover experienced a slight dip from £11.6m to £11.3m, it rose from £5m to £5.8m in other parts of the world.
These results follow the news that the organisation behind the Mercury Prize and co-owner of the Official Charts Company saw its profit reduced during 2023, despite the financial success of the BRIT Awards.
The British Phonographic Industry (BPI), the trade association for the 海角视频's recorded music industry, has reported a turnover of £18.4m for 2023, down from £19.3m in the previous year. Recently filed accounts with Companies House reveal that the BPI's pre-tax profit also fell from £168,071 to £53,778.
The BPI is responsible for organising the BRIT Awards and the Mercury Prize, and co-owns the Official Charts Company with the Entertainment Retailers Association.