PRS for Music announces six month results

PRS for Music announces revenues for the six months to 30 June 2009

PRS for Music announces revenues £282m for the six months to 30 June 2009

PRS for Music, the organisation representing songwriters, composers and music publishers, today announced its unaudited results for the six months to 30 June 2009, with half year revenues of £282m (H1 2008: £290m).

Revenues collected by PRS for Music were slightly reduced year-on-year, which nonetheless represented a strong performance by the organisation, considering the difficult operating environment generated by the recession.

Despite flat revenues, PRS for Music is pleased to announce that it has delivered a distribution of £199m to date in 2009 paid out to its members, an increase of 8.2% compared to the first half of 2008 (£181m).

This robust performance maintains PRS for Music’s position as leading the digital market in Europe. The IFPI estimate the retail value of the UK digital market to be €263 million - which is double that of its larger neighbour Germany.  Indeed, of the five major European markets, the UK makes up 40% of total digital retail value.

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So far this year, PRS for Music has distributed £199m to its members, up 8.2% on H1 2008’s £181m, reflecting the 2008 growth revenues and our continued ability to deliver vital income to our members.

The economic outlook for the second half of the year remains challenging. However, we will continue to work hard to ensure a fair deal for our 60,000 songwriter, composer and music publisher members by delivering maximum revenue at minimum cost.

Jeremy Fabinyi, Acting CEO - PRS for Music

PRS for Music Revenue Figures for Jan-Jun 2009:

Broadcast & online revenue stream: -6% change

  • 2009 Jan-Jun revenue (£m): 77.0
  • 2008 Jan-Jun revenue (£m): 82.3

Recorded media revenue stream: -6% change

  • 2009 Jan-Jun revenue (£m): 73.9
  • 2008 Jan-Jun revenue (£m): 78.5

Public performance revenue stream: 1% change

  • 2009 Jan-Jun revenue (£m): 71.5
  • 2008 Jan-Jun revenue (£m): 70.5

International revenue stream: 2% change

  • 2009 Jan-Jun revenue (£m): 59.7
  • 2008 Jan-Jun revenue (£m): 58.6

Total revenue: -3% change

  • 2009 Jan-Jun revenue (£m): 282.1
  • 2008 Jan-Jun revenue (£m): 289.9

2009 year forecast vs 2008 actual

Revenue stream

Full year 2009 forecast (£m)

Full year 2008 actual (£m)

% change

Broadcast & online

174.4

180.2

-3%

Recorded media

123.4

141.6

-13%

Public performance

147.6

146.7

1%

International

150.4

139.8

8%

Total

595.8

608.3

-2%

Further information on 2009 outlook for PRS for Music's revenue streams:

  • Broadcast and online is behind our expectations at half year but this is due to phasing of revenues and we expect to make up ground in the second half of the year. The full year result is expected to be slightly below the 2008 result which included significant ‘catch up’ revenue under new licensing agreements.
  • Recorded media had a strong start to the year with the audio product market holding up better than predicted in a strained market and continued strong results from non-music DVD’s. The full year prediction is a 13% decline year on year.
  • Public Performance Sales had a challenging start to the year as the recession hit the high street, affecting many of our customers. This is expected to continue for the full year; however we are still predicting modest growth on 2008.
  • International revenue is slightly ahead at half year compared to 2008. Gains are expected to consolidate in the second half of the year resulting in an 8% increase on 2008 revenues. The continued weakness of the pound will help our results in this area.

Further information on 2009 distribution to members:

  • Thousands of writer and composer members will be receiving the second of four distributions throughout the year.  PRS for Music distributions cover royalties earned whenever their music is played, performed or reproduced both in the UK and internationally.  Writers and composers earn from such diverse areas as radio play to streaming services such as Spotify to jingles used on television adverts.
  • Since lowering membership fees PRS for Music has seen a doubling of new applications from a range of musical genres confirming the UK as a major player in the global music scene. The UK music industry has been estimated at £3.6bn for 2008 by PRS for Music, a rise of 4.7% on 2007.