Chrysalis results end on a high note

Oct 17 2009 by Iain Laing, The Journal

MUSIC group Chrysalis has added reason to cheer following a boost from renewed interest in The Beatles and Michael Jackson and said its annual results were set to beat expectations.

The firm said the recent chart successes of current artists, including Bat for Lashes, The Gossip and The Horrors, had ensured continued success in the fourth quarter in a resurgent year for the company.

Analysts are also forecasting further improvements in 2010 as Chrysalis reaps rewards from last month’s release of digitally re-mastered Beatles’ work, for which it owns Beatles’ producer George Martin’s master rights to several of the albums.

Chrysalis also whetted the market’s appetite in August with news that the writer behind Jackson hits such as Thriller and Rock with You – Rod Temperton – was on its books, expected to offer a stream of lucrative royalties following the singer’s death.

It said today that its music publishing division and its book distributor Lasgo Chrysalis had continued to perform well since the upbeat third quarter statement in the summer. “As a result, the full-year results are anticipated to be slightly ahead of the board’s expectations,” confirmed the group.

It is hoping for full-year growth in net publisher’s share (NPS), which is a key measure in the music industry, calculating the amount of royalties received by a publisher, less those paid out.

NPS has been boosted by currency movements, but Chrysalis is aiming for growth even with this stripped out.

Chrysalis has been involved in a turnaround plan in recent years as it looks to revive it fortunes after a tumultuous time. It sold off radio stations Heart and Galaxy in 2007 to become a focused music and distribution group.

Interim results in May revealed it narrowed pre-tax losses to £2.6m from £13.1m a year earlier, but it endured a tough previous year, having seen annual losses triple after restructuring.