Independent label Beggars Group has published its financial results for 2017, and they reveal a 2.6% rise in its annual revenues to £72.4m (around $94.7m), with a net profit of just under £7m compared to £11.9m in 2016.
In the directors’ notes for the financials, they cited streaming as playing a role in opening up new markets for Beggars’ artists. “Beggars Group had another successful trading year, finding and introducing an exciting range of new artists, and benefitting from the growth in streaming, particularly across its broad catalogue,” they explained. “Of particular note is the access that streaming has allowed us to emerging markets, and the growing success of our American business.
Revenues from our European territories remain very strong and are a significant part of our success.” Read more on the emerging-markets angle with our recent interview with Beggars exec Simon Wheeler about its business in China.
The label also warned of the risks posed by the UK’s decision to withdraw from the European Union. “Revenues from the EU are a critical element of the business. Therefore, is is of some concern that the arrival of Brexit may hold back further growth. As an international business based in London, we have several areas for concern: these include restrictions on passage for staff and artists, additional costs of tariffs, duties and withholding taxes on royalties, time and cost of compliance with two sets of border regulations and trading standards.”