Polygram Dragged Lower

Strong album sales by rock veterans U2 and teenage neophytes Hanson failed to lift first-half profits at PolyGram, the worlds largest music company, which is still grappling with losses in its film unit. PolyGram Tuesday reported a 5.1 per cent increase in first-half sales to Fl 4.5 billion ($2.2 billion) but net income slipped from Fl 272 million to Fl 270 million. While music sales grew 9 per cent, the film divisions revenues fell 14 per cent and its losses reached Fl 92 million, against a loss of Fl 37 million in last years first half. Analysts had anticipated a strong performance in music, helped by sales of 5 million copies of U2s Pop as well as 3 million copies of Hansons debut album. However, Alain Lévy, PolyGram chairman, said the groups film performance had been relatively weak in the first half of this year. FT