SANCTUARY's First-Half Profit Seen Falling 40%
June 17, 2005According to Sharecast.com, Sanctuary Group, the music company which handles artists such as GUNS N' ROSES, IRON MAIDEN, SLIPKNOT and SLAYER, has warned that first half underlying earnings are likely to be 40% lower than last year.
Underlying earnings for the full year will also be substantially less than last year's and consequently very substantially lower than market consensus for the full year, it said in a statement.
The company said there there had been a significant slippage of record releases in the records division and lower sales compared with last year.
Simultaneously, the group has incurred the expected additional operational costs in pursuit of its international growth strategy.
It is now undertaking a thorough review of all the operating divisions with a particular emphasis on looking at ways to improve cash generation and profitability and reduce long-term debt levels.
The company announced a bid approach at the start of the month but said there had been no further developments.
According to Bloomberg, Sanctuary makes recordings by artists such as ALISON MOYET and former LED ZEPPELIN vocalist Robert Plant and has expanded its artist management and merchandising activities in recent years. The music industry has sought alternative revenue sources as global sales of recorded music have declined.
Sanctuary will report first-half results on June 28.
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