A platinum palace

Arista posts annual sales of $425 mil

By ADAM SANDLER

Buoyed by a contingent of topselling albums and firing on all cylinders, Arista Records topped $425 million in sales during its fiscal 1998-99 year.

The Gotham-based outfit led by Clive Davis also posted a record $121.4 million in sales for the fourth quarter, doubling its previous best of $67 million logged in 1994. Annual profits hovered north of $60 million, according to insiders.

The impressive numbers, logged July 1-June 30, come as the label is poised to celebrate its 25th anniversary this fall.

Selective, successful

The tallies signal another banner year for the tony Arista, which releases far fewer albums than its competitors, yet achieves top-notch results.

The label's acumen for making the most out of current releases from superstar acts like Whitney Houston, Monica and Sarah McLachlan is well documented, but the far less sexy special markets and film-TV licensing arms also earned record revenues.

The divisions respectively created musical compilation packages such as the "Ultimate Series" and placed a record number of the label's tunes in films, TV shows and ad spots.

Arista's overseas results were also impressive, with a number of albums posting solid tallies.

"The synergy between us and BMG overseas is working extremely well," Davis told Daily Variety. "But it all comes down to the quality of the albums. If you take the effort to put vital, unique artists with the right material, they will succeed."

Davis pointed to Houston's "My Love Is Your Love" -- which has topped 2 million units sold in the U.S. -- as an example of meshing strong material with a potent artist. Eight months after its international bow, CD is high on charts in several key overseas markets such as the U.K. and Germany.

"Labels typically hit the over-$400 million mark and then retreat, but not sustain it year after year," observed Charles Goldstuck, Davis' second-in-command. "This is our third consecutive year at that level, and next year is shaping up to be a strong one also."

Though released late in the fourth quarter, McLachlan's "Mirrorball" also helped Arista's revs. It's is approaching 1 million units sold in its fifth week.

Owned by more than 4.2 million fans, her previous disc, "Surfacing," was one of the bestselling albums of 1998 and significantly added to Arista's 1998-99 bottom line.

LaFace Records, the joint-venture label owned by Antonio Reid and Kenny Edmonds, again bore fruit with multimillion units selling discs from Usher, Outkast and TLC.

Arista's joint venture with Sean Puffy Combs' Bad Boy Entertainment enjoyed strong sellers from Faith Evans and 112, among others.