Profits in the British arm of music giant Warner nearly halved after its artists were forced to cancel tours.
Profits at the British arm of music giant Warner were nearly halved last year after its artists were forced to cancel tours due to the pandemic.
Warner Music UK – the home of Dua Lipa and Liam Gallagher – saw profits fall by 46 per cent to £25 million as of 25 September, new accounts show.
Sales of £214.6million were down 20 percent from the previous year.
Angrily don’t look back: Label blames low revenue from tour merchandise, live shows and broadcasts
The label blamed low revenue from tour merchandise, live shows and broadcasts. An accounting change also retroactively increased revenue from a year ago.
However, Warner noted that it had benefited from lockdown savings in travel, entertainment and industry events and added that streaming revenues have been ‘resilient’.
The update came as three music giants – Universal, Sony and Warner – came under scrutiny at Westminster. After a six-month investigation, a committee of lawmakers warned last week that artists were seeing “pathetic” returns from streaming their work. Warner Music UK is part of the Warner Music Group, which was launched in the US last year.
The Nasdaq float, which was valued at WMG $12.8 billion, saw Britain’s richest man, Sir Len Blavatnick, cash in on $1.9 billion in shares. The group fell into the red last year with a loss of $229 million, with revenue of $4.5 billion.