Kobalt Music Group has published its financials for the fiscal year that ended on 30 June 2019. The company’s revenues grew by 35.1% year-on-year to $543.4m, but its total comprehensive losses for the year, net of tax, grew by 45.6% to $56.8m.
“The Group’s on-going losses are the result of a conscious decision to prioritise growth through making strategic investments over short-term profitability,” claimed the ‘business overview’ section of the financials filing. “The results are in line with the Group’s long term forecasts.”
Within the results, Kobalt’s publishing business (including Kobalt Capital) grew revenues by 27.9% to $405.3m; distributor and label services division AWAL grew by 86.1% to $111.5m; Kobalt’s neighbouring rights business declined by 25.4% to $6.2m; and its AMRA collecting society grew by 46.3% to $65.6m.
Kobalt’s total gross collections for the last fiscal year grew by 25% to $616.4m, and it’s predicting that they will pass $700m for the next year (ending 30 June 2020). The company’s headcount continued to expand too: from 515 to 652 by the end of June 2019. “Kobalt’s mission is stronger than ever and we are aiming for future growth and profitability,” said chairman Willard Ahdritz in a statement.
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