Virgin Records: Streaming boom and Abbey Road Studios help profit more than double
The continued boom in music streaming as well as the popularity of Abbey Road Studios among major artists helped Virgin Records’s profit more than double during its latest financial year.
The company has reported a pre-tax profit of £76.9m for 2023, up from the £37.2m it posted in 2022.
According to newly-filed accounts with Companies House, Virgin Records’ turnover also increased from £72m to £76.9m over the same period.
The company said the rise in its turnover was due to an increase in demand for streaming services alongside a growth in recording studio activity and retail sales at its Abbey Road Studios.
Virgin Records was set up in 1972 by Sir Richard Branson, Simon Draper, Nik Powell and Tom Newman.
It saw success after signing the likes of Phil Collins, Janet Jackson, Lenny Kravitz, the Sex Pistols and Culture Club.
The company was sold to Thorn EMI in 1992 and has been owned by Universal Music Group since 2012.
Virgin Records’ turnover from product sales increased from £31m to £32.5m while royalties rose from £41m to £44.4m.
In the UK, the company’s turnover grew from £45.5m to £48.9m and from £9.7m to £10.8m in the rest of Europe.
Virgin Records’ US turnover dipped slightly from £11.6m to £11.3m but rose from £5m to £5.8m in the rest of the world.
The results come after the organisation behind the Mercury Prize and that co-owns the Official Charts Company saw its profit cut during 2023 despite the financial success of the BRIT Awards.
British Phonographic Industry (BPI), which is the British recorded music industry’s Trade association, reported a turnover of £18.4m for 2023, down from £19.3m.
According to recently-filed accounts with Companies House, the BPI’s pre-tax profit also fell from £168,071 to £53,778.
The BPI organises the BRIT Awards and the Mercury Prize and co-owns the Official Charts Company with the Entertainment Retailers Association.