Independent label Beggars Group has filed its latest annual financial results with Companies House in the UK. The company’s revenues fell from £74.2m in 2018 to £63.1m in 2019.
The report notes that the 2018 figure was skewed by Beggars’ revenues from the sale of Spotify shares after the streaming service went public. “Like for like we are pleased to note that the growth in sales is consistent across our key territories,” reported the label.
The financials offer some thoughts on the risks posed to Beggars Group (and by extension other labels in the UK) by the Covid-19 pandemic, and also the UK’s exit from the European Union.
In the former case, promotional activity around new releases has been limited in some ways. “There will be a financial impact both in terms of reduced sales, but also short term reduced costs from deferring those releases or limited promotional activity,” it noted, adding that a strong back catalogue is mitigating the impact, particularly in streaming.
As for Brexit: “A no-deal Brexit may interrupt our physical supply chain in the short term, and longer term this could threaten the domestic market for vinyl,” warned Beggars. It adds concerns about the removal of free movement for UK artists into the EU (and vice versa) and the uncertainty about the UK’s plans for passing an equivalent to the European Copyright Directive.