PPL has today announced its financial results for the year ending 31 December 2012.

The growing use of recordings on television, radio and online platforms as well as in public combined with the continued strength of UK recordings in international markets led to the collection of an additional £17.3m.

Royalties collected are distributed to record companies – rightsholders – and performers when their music is broadcast or used in public in the UK or abroad.

The key results are:

• Total PPL licence fee income grew to £170.8 million, an 11% increase from 2011.

• This comprised:
o    Broadcasting and Online income growth of 5% to £69.4 million.
o    Public Performance income growth of 18% to £64.8 million.
o    International income growth of 13% to £36.6 million.

• Distributable revenue grew to £146.6 million, up by 12% from 2011.

• The company’s cost to income ratio fell to 14.4%, compared to 14.9% in 2011.

Broadcast and Online:  2012 saw the renewal of PPL’s agreements with its largest single licensee – the BBC. The new agreement, covering BBC radio and television services, runs to 2017 and provides a degree of stability to PPL revenues over the medium term. Revenues from PPL’s principal licensees in commercial radio and television have continued to grow despite increasing competition from new online services.

Public Performance: An increased focus on raising awareness levels of the requirement for many businesses to hold PPL licences, supported by improved internal processes, led to significant increases in the number of premises licensed.

International: This reflects both the success of UK repertoire around the world and increasing sources of PPL revenue. Revenues were received in 2012 from nine additional territories and an increasing number of PPL members signed up to the company’s international collection service.

“I am delighted to be able to report strong growth across all of our three main income streams as a result of the continued good progress PPL is making as a company as well as the astonishing success and popularity of UK music domestically and around the world,” said Peter Leathem, CEO of PPL. “The growth in our International collections was clearly supported by the UK continuing to punch above its weight on the global stage.

He continued, “We are very aware of, and sensitive to, the ongoing difficult economic environment as it clearly affects not just our members, the vast majority of whom are small businesses and sole traders, but also our licensees as well. The significant growth of public performance income from businesses such as bars, shops, and offices was particularly pleasing and was largely achieved through a continued drive to raise awareness of licensing requirements with new local campaigns across the UK as well as improvements to internal processes and systems which continued to lead to more effective customer service delivery.”

As reported by the global recording industry trade body IFPI earlier in April, “performance rights” income from recorded music (such as the licensing income collected by PPL) was the fastest growing income stream in the worldwide recording industry in 2012. Globally, performance rights income grew by 9.4% in 2012 to reach US$943million, accounting for 6% of worldwide recorded music revenues. In IFPI’s global rankings, the UK (PPL) is second only to the USA in performance rights income collections.

Fran Nevrkla OBE, Chairman PPL said, "PPL's 2012 results give me a double pleasure. They are strong by any measure and demonstrate the effectiveness of the management succession process. My congratulations, in his first year as CEO, to Peter Leathem and the rest of the team!”