PPL celebrates record financial performance in 2015

26 April 2016 - Press release

Music licensing company PPL announces annual financial results

Music licensing company PPL achieved record results across all three of its major revenue streams in 2015. On behalf of its performer and recording rightsholder members, for use of their recorded music in public both in the UK and internationally, PPL collected £197 million in 2015, a 5% uplift on 2014. This was achieved while maintaining a similar cost-to-income ratio to that of 2014 at just above 14%.

Of the three main revenue streams, revenue from the public performance of recorded music across the UK experienced the largest growth with a 10% increase year-on-year to £84.4 million. This significant uplift was achieved through increased market penetration, supported by improved licensing processes and awareness campaigns across a range of business sectors, to deliver an additional £7.7 million in licence fee revenue over 2014 collections. PPL has seen substantial development in this area with 68% growth over the past five years.

Broadcast revenue grew by 3% to £75.9 million in 2015, with growth in both radio and TV licensing driving this performance. This was largely achieved through PPL's licensing of the commercial radio sector, with a recovering advertising market contributing to an increase in licence fees paid to PPL year-on-year. Whilst traditional UK television audiences have plateaued in recent years, PPL has continued to secure growth through developing and adapting licences to cover catch-up TV and other digital services. These licences enable the continued use of PPL members' repertoire throughout the television production cycle, from the initial copying and UK broadcast through to subsequent new media uses and sales in the international television market.

International collections increased by 1% to £36.7 million in 2015. This was a 5% increase on a currency-neutral basis. PPL's largest market for international collections continued to be the USA (£9.6 million) which accounted for 26% of international revenue. Significant sums were also received from Germany (£4.8 million) and Belgium (£3.8 million) as backdated revenue was paid through from these countries.

With a total of 79 agreements in place with other CMOs across the globe, PPL collected international revenue from more territories than ever before in 2015, reasserting the company's position as the leading collective management organisation (CMO) in the neighbouring rights market.

Peter Leathem, CEO, PPL said: "2015 was a very good year for PPL members. We collected more revenue across each of our main revenue streams and also paid out more of that revenue faster to more members than ever before. PPL continues its long-term commitment to deliver revenue growth, operational efficiencies and an ever improving level of customer service for its members, as well seeking to maintain the high level of customer satisfaction from our licensees."