Entertainment group Sanctuary - which has stars including Beyonc Knowles on its books - said hits in the past six months helped boost profits, despite a global slump in CD sales.

Sanctuary, owner of the world's biggest live tour booking agency outside the US, saw pre-tax profits rise 15 per cent to £6.9m in the six months to March 31.

The group said appearances by its artists at every major summer festival in Europe would boost its traditionally stronger second half.

Worldwide sales of compact discs and recorded music rose 17 per cent during the period, even though the sector has been losing out to fans downloading music from the Internet.

Successful releases included The Strokes' second album Room on Fire, which reached number two in the UK, and Belle and Sebastian's Dear Catastrophe Waitress album, which sold more than 250,000 copies.

Other hits included the chart-topping single Changes, by Ozzy and Kelly Osbourne, and Christmas number one Mad World, by Gary Jules.

The management division, whose artists include Manic Street Preachers, Destiny's Child and Iron Maiden, added Slipknot and Mary J Blige to its books.

Last year was a record for live touring and this year is expected to be similar.

At the bottom line, pre-tax profits before goodwill were £3.8m, compared with £3.4m a year earlier.