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14 August 2009
Chrysalis PLC
Chrysalis delivers steady NPS performance for first 9 months
Interim Management Statement
Chrysalis PLC today announces its Interim Management Statement in respect of the third quarter from 1 April 2009 to 30 June 2009.
The overall financial performance of Chrysalis was in line with the Board's expectations, with normalised operating profit up on the comparative period.
Music Publishing: The second half started well with good chart performances from The Gossip and the Mercury award nominated acts Bat for Lashes and The Horrors building on the first half successes which included White Lies, The Fleet Foxes and The Yeah Yeah Yeahs. The Net Publisher's Share (NPS) for the nine month period was up 9.9%. The NPS for the three month period was marginally down 2.7% due to higher US NPS in the comparative period. As indicated at the time of the interim results, currency is affecting the reported NPS this year and on a constant currency basis NPS for the nine month period was down 3.8%, again due to higher US NPS in the comparative period.
In the final quarter releases are due from Brendon Benson, Nerina Pallot, Athlete and The Cribs. Chrysalis writer Fraser T Smith co-wrote Tinchy Stryder's chart topping single "Number One" and also co-wrote his new single "Never Leave You" which is currently no. 1 in the charts. Both will be featured on Tinchy Stryder's new album, released on 17 August.
We also expect to have a significant interest in the eagerly-anticipated new Robbie Williams album to be released in November, through our writers Kelvin Andrews and Daniel Mould, known as Soul Mekanic.
The unexpected death of Michael Jackson has resulted in an extraordinary surge in the sale of his work. Chrysalis publishes a number of his best known hit songs including "Thriller", "Rock With You" and "Off The Wall" through our writer Rod Temperton.
We have great hopes for the Beatles forthcoming digitally re-released repertoire for which we hold certain George Martin producer master rights, alongside the Beatles Rock Band game which is released in September. The impact of both will largely be felt next year.
Consistent with its strategy of growing its high quality portfolio of music publishing rights organically and through selective acquisitions, Chrysalis acquired the Richard Marx catalogue in June 2009, which includes well-known classic songs including "Right Here Waiting," "Hazard," "Endless Summer Nights", "Now and Forever" and "Dance With My Father", and provides a valuable addition to Chrysalis's existing catalogue of over 65,000 copyrights.
Non-Publishing: All of our Non-Publishing businesses performed in line with expectations for the period. We anticipate that they will be profitable in 2009.
Consolidated NPS, comprising Publishing NPS and the NPS from exploitation of Chrysalis Copyrights and Echo repertoires, was up 14.5% for the nine month period and 1.2% up on a constant currency basis.
Lasgo Chrysalis: Lasgo continues to outperform the Board's expectations and is on track to exceed expectations for 2009.
Corporate: We remain focused on minimising our corporate overhead which was substantially lower than the comparative period. The interest charge continues to be impacted by our adverse hedge arrangements and we are currently evaluating a number of options to reduce this. Net debt at 30 June 2009 of £12.1 million was up £5.3 million against the comparative period, primarily reflecting the acquisition of the Richard Marx catalogue. The Group has an unused facility of £37.4 million available for further acquisitions of NPS-enhancing catalogues.
Outlook: Chrysalis continues to see the benefits of its A&R decisions and successful rights management activities coming through. The Board remains focused on ensuring that the day-to-day performance of both Chrysalis Music and Lasgo Chrysalis are optimal in enhancing the value of its core assets to the benefit of all shareholders. While the macro-economic environment remains uncertain and exchange rates continue to impact performance, the last quarter of the financial year is typically the strongest and we are cautiously optimistic that we will achieve year on year consolidated NPS growth in 2009 on a constant currency basis.
Chrysalis Plc
Andy Mollett 020 7465 6321 or 07825 781785
Financial Dynamics
Charles Palmer 020 7269 7180
Emma Appleton 020 7269 7159
This information is provided by RNS
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