Revenue Falls At Sony BMG
May 14, 2008 at 7:50 AM (PT)
Revenue at SONY BMG has fallen 3% year-on-year, with the company blaming the continued decline in the physical music market, reports MUSICWEEK.COM.
For the year to MARCH 31st, SONY BMG reported sales and operating revenue of $3.93 billion (£2.0 billion), down from $4.1 billion (£2.1 billion) last year. The company said that this was due to "the continued decline in the physical music market not being offset by the growth in digital product sales."
However, despite falling sales the company reported a 90% increase in income before taxes to $257 million (£132.5 million), largely due to a reduction in re-structuring costs following the group’s merger, lower marketing costs and lower overheads.
The figures were announced as part of SONY BMG joint owner SONY’s annual results.