Info
Sony BMG sees profit rise
Joint venture endured a fiscal year that saw executive shake-ups and legal and public relations nightmares--but strong sales from the likes of Kelly Clarkson.
Despite a turbulent fiscal year, Sony BMG posted a rise in profits on the back of strong sales from the likes of pop star Kelly Clarkson, and Italian popera group Il Divo.
Clarkson's
Breakaway has sold more than 5.2 million copies in the US.
The label, a joint venture between Sony and Bertelsman, unveiled its financial results yesterday as part of coparent Sony's earnings report.
Sony BMG posted a profit of $95 million on sales of $4.3 billion for Sony's fiscal year that concluded March 31. Before taxes, the label giant recorded income of $150 million, despite $186 million in restructuring charges associated with the joint venture. The joint venture posted a net loss of $66 million on sales of $3.3 billion between August 2004 and March 2005.
The profit was largely driven by strong sales of Clarkson's Breakaway and Il Divo's Il Divo and Ancora. Foo Fighters' In Your Honor, System of a Down's Mezmerize, and Shakira's Fijacion Oral Volumen I also posted strong sales, the label said.
Sony posted equity in net income of $50 million from its half of the joint venture.
The fiscal year saw management shake-ups, a legal and public relations nightmare over its use of spyware-like copy-protection technology on its CDs, and widespread speculation that Sony will seek to buy out BMG's 50 percent stake in the venture.
Just added
