CDs sales at the Irish arm of Universal Music fell by a third last year. The slide saw pre-tax profit at the group, which counts U2, Lady Gaga and Madonna among its artists, drop by 62 per cent to €596,515.

Accounts just filed by Universal Music Ireland show that overall revenues were 16 per cent weaker at €12 million, compared to €14.3 million in 2010. CD sales were down 32 per cent on €6.9 million, from €10.3 million a year earlier.

Pre-tax profits fell from €1.5 million to €596,515.

According to the directors’ report, “turnover decline in 2011 was due to difficult trading conditions as a consequence of the economic recession combined with piracy and illegal downloading”.

The directors say: “Despite a fall in turnover, the company maintained its leading market share in the Irish music market in 2011.”