APRA & AMCOS: strong figures for 2010 - 2011 financial year; AGM election results announced

Music creator societies, APRA & AMCOS, announced a combined record revenue of $240 million (up by 8%) for the year ended 30 June 2011.

APRA|AMCOS CEO, Brett Cottle, said this result was driven by growth across almost all areas of public performance licensing (up by 9% to $59 million) and remarkable growth in digital revenues (including streaming and downloads) which grew by 50% to $30.2 million.

"Both APRA and AMCOS achieved strong growth in distributable revenue and made significant progress in key service delivery areas to members during the 2010 -11 financial year," Mr Cottle said.

APRA's overall revenue result for the year - up $10.6 million to $183 million - was adversely affected by foreign revenue results which were down 8% to $20.2 million. "When assessed against the spectacular rise of the Australian dollar against major trading currencies during the year, the result can reasonably be regarded as very satisfactory in the circumstances," Mr Cottle said.

APRA's expense to revenue ratio increased to 12.24% (up from 12.12%). The ratio remains one of the lowest amongst copyright collecting societies worldwide. "The cost pressures related to systems development and enhancements which remain a significant driver for the organisation, confronted as we are with dramatic changes in the commercial environment in which music is used, a rapidly expanding membership base and a huge increase in the quantum of music-use data needing to be processed," said Mr Cottle.

AMCOS posted a 15% increase in gross revenue for the year - up to $57.1 million. This increase reflects a 67% growth in revenue from sales of digital downloads in Australia and New Zealand. The decline in physical product continues apace in the Australasian market, with mechanical revenue from physical product sales down by almost 20% to $5.4 million. Apart from physical product and ringtones (which fell by 42% to $1.3 million) most other mechanical revenue lines saw increases over the past year. AMCOS operating costs grew by 3% to $6.8 million, producing an expense to revenue ratio of 11.91%.

Highlights
· APRA|AMCOS achieves record revenue of $240.1 million (up 8.1%)
· Record number of music creators and rights holders paid by APRA: 232,039
· 66,608 APRA Members (up 8.1%)
· 9,425 AMCOS Members (up 23.8%)
· APRA general performance revenue up 9.0% to $35.2 million
· APRA|AMCOS digital and online revenue up 50.2% to $30.2 million
· APRA New Zealand revenue up 11.5% to NZD$22.1 million
· AMCOS New Zealand revenue up 22.6% to NZD$6.3 million
· 8.5 million performance records processed from 800 revenue sources

Outlook
Mr Cottle said APRA|AMCOS' focus for the year ahead is to continue to deliver a solid performance in the Australian and New Zealand operations and to review ongoing service delivery improvements and growth opportunities in emerging markets.

"In financial terms, the year ahead looks cautiously positive, however, the current global uncertainty is escalating and we are not isolated from the adverse impact of that uncertainty. But the breadth of our operations and the relationships established with key customer groups makes us well-placed to withstand another storm," Mr Cottle said.

View annual reports online
You can view the 2010 -11 annual report documents online at www.apra-amcos.com.au [go to About>Corporate Docs] or click on the links below:

• Overview of APRA and AMCOS’ 2011 Financial Year Results
• 30 June 2011 APRA Annual Financial Report
• 30 June 2011 AMCOS Annual Financial Report

APRA & AMCOS AGM

The APRA and AMCOS 2011 Annual General Meetings were held Thursday 17 November at the APRA|AMCOS head office in Ultimo, Sydney.

APRA Writer Directors Eric McCusker (Mondo Rock) and Nigel Westlake (film composer Miss Potter and Babe) were due to retire from the Board and were both re-elected.

The AMCOS Board had five vacancies available. Retiring Directors Bob Aird (Universal Music Publishing), Matthew Capper (Warner/Chappell Music Australia), Catherine Gerrard (AMPD), and Damian Trotter (Sony/ATV Music Publishing Australia) all returned to the Board with the additional vacancy filled by Marianna Annas (ABC Music Publishing).

Mike Perjanik and Ian James (Mushroom Music Publishing) continue as APRA Chair and Deputy Chair respectively; and Ian James returned as Chair of AMCOS with Matthew Donlevy (peermusic) elected Deputy Chair.