LONDON: Pre-tax profits at the UK-based entertainment group co-owned by concert promoter, Denis Desmond, last year jumped by 50% to £6.4m (€9m).
Academy Music Group (AMG) Ltd last year enjoyed the large jump in pre-tax profits in spite of revenues declining marginally by 0.5% from £32.3m to £32.12m. Mr Desmond heads up MCD Promotions here and through his joint venture with Live Nation, the LN Gaiety Holdings Ltd entity, he owns 26% of Academy Music.
AMG paid out £26.8m (€37.75m) dividends between 2011 and 2013 with none paid out last year. Next Tuesday, Hozier plays a sell-out gig at one of its 19 UK venues, the Shepherd’s Bush Empire.
The firm is the owner and operator of live music venues in the UK and other venues under its banner including the O2 Academy Brixton and regional venues across the UK including the O2 Academy in Leicester and the O2 Academy in Sheffield. AMG venues in 2015 are expected to host 3,000 events attracting up to 3m customers this year.
Last year, AMG’s operating profits increased by 59% going from £3.85m to £6m and this followed a 2% increase in operating profits in 2013. The jump in operating and pre-tax profits arose chiefly from AMG cutting back on its administrative costs by over £2m from £24.7m to £22.6m.
Income from fixed asset investments totalling £310,000 and net interest receivable of £374,096 added to profits. Numbers employed last year declined from 279 to 260, with staff costs increasing marginally from £6.19m to £6.2m. The balance sheet remains strong, with accumulated profits of £33.25m and cash of £5.2m.
The profits last year take account of operating lease rentals of £2.24m and non-cash depreciation costs of £2.238m. Mr Desmond’s Irish MCD business is not required to file annual accounts as it has unlimited status.
