Beggars Group revenues hit £70 million

Beggars Group revenues hit £70 million

Beggars Group has issued its 2016 financial results, which show revenues down slightly to £70.6 million (£72.9m in 2015). Net profit was £11.85m, compared to £12.9m a year earlier.

The label group includes XL Recordings, 4AD, Rough Trade Records, Matador Records and Young Turks. In its company statement, Beggars singled out successful releases by Daughter, Savages and Anohni, as well as the acquisition of the Radiohead catalogue and the band’s album A Moon Shaped Pool.

Beggars issued a note of caution about the value gap between ad-supported and premium services – an issue which has just prompted a strong statement by the RIAA. But the company said it has also benefited from physical sales.

“During 2016 Beggars Group experienced a further shift to streaming,” said the statement. “But the drop off in physical formats has slowed thanks to the resurgent demand for vinyl. We remain committed to promoting group artists through whichever channels music fans choose to listen.”

Gross profit was £19.6m, up on the previous year’s £17.35m. Total operating profit was £12.5m, down slightly on £13.2m in 2016.

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