Start up C2W Music is reporting its first quarter of profits since it was listed on the junior market in 2012. The company that had chalked up losses in each quarter since listing, shows a profit of US$16.6000 for the June 2014 quarter, in its latest release of results.
The company booked copy right income of US$30,000 in the quarter and royalty of only US$189, but with administrative expenses of $12,193 and finance cost of US$1,396 the income was enough to leave a surplus for the quarter. This compares with a loss of US$157 million in the 2013 quarter. For the six months to date, losses are down to $66,000 versus $346,000 in 2013. Is this the light at the end of the tunnel? Management seems to think so as the quote to shareholders show below suggest.
“The Company negotiated an extremely strategic joint venture music publishing deal with one of our songwriters and an extremely successful music publisher, Rebellion Corps/Notting Hill Music. In this joint songwriters and an extremely successful music publisher, Rebellion Corps/Notting Hill Music. In this joint venture, they will help us in securing homes for more of our copyrights, which will result in increased revenue for the Company. The Company continues to work closely with the Caribbean Performing Rights Societies to recognize our rightful revenue, as their new royalty distribution systems are now in place. The Company continues to exploit our own catalogue and continues to have success in this area. We are also proud and happy to know that the Maxi Priest album is doing very well with two of our songs on the album, and the Etana album is heating up to be a success story also,” Ivan Berry the company’s CEO stated in commenting on the results.
At the end of the quarter, the company had equity of only US$34,000 having racked up net losses of US$1.25 million, loans of $75,000 and cash of only $2,000.
C2W Music reports 1st profit
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[…] C2W Music announced today, that it will shift its business model, from music publishing to artiste management under the 360 model. The change is aimed at increasing revenue streams, at the cash strapped company, said CEO Ivan Berry, Saturday at the annual general meeting, held at the Knutsford Court Hotel, in Kingston. “The 360 model is an all rights model. We are not in the music publishing business, we are now in the all rights business,” Berry told roughly 20 shareholders at the early morning meeting. “We are going to sign fantastic songwriters and create copyright, we are going to sign fantastic artistes and help them get global recognition and going to sign producers and make earnings from producer fees.” C2W made a net loss of US$620,000 for 2013 which mirrored a US$602,700 loss, a year earlier and virtually wiped out the capital it raised in early 2012, leaving only US$42,000 at the end of 2013. C2W will follow the model of global company BMG which sold its record label to Sony then immediately set-up BMG Rights Management. “It is tough operating without revenue and it will continue to be tough. As CEO we value the trust that shareholders have put in us and we will continue to grow this company,” stated Berry. “Where we need to go is to be a fluid flexible operation that can move in on the drop of a dime.” Berry lamented that under the music publishing model the publisher is the first to spend cash and last to get paid.“As we give these artistes songs. The artiste immediately goes on tour and [earns] from our songs but we have to wait another 14 months for our royalties to be collected globally…we are the last to be paid,” explained Berry in his trademark muscle shirt and chain. The shift actually reflects the more ‘Jamaicanised’ directorship which includes local music experts Sly Dunbar and Clyde McKenzie. “So we are fast going into the 360 model…so that we get a piece of live shows, we get a piece of the endorsement deals, sponsorship deals and all that comes along with an artiste,” he concluded. […]
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