CEO Thomas Coesfeld has hailed BMG's “outstanding first half of the year” as the company unveils its H1 results.
As revealed in the new half-year report, BMG is celebrating double-digit organic revenue growth of 12.5%, EBITDA adjusted growth of of 35%, with a “record EBITDA margin”.
The rise was driven by BMG “successfully reorganising its operations, focusing the business on the core music functions to better meet the evolving needs of artists and songwriters” and “the successful migration to direct digital distribution”. BMG’s digital revenues grew by 20.3% percent year-on-year.
BMG’S HALF-YEAR REPORT IN NUMBERS
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BMG has seen its revenues swell to €459 million, up 11.1% compared to €414 million this time last year. Its revenue is broken down as 62% publishing, 36% recordings and 2% broader rights.
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Organic revenue growth was 12.5%, caused by strong growth in its digital income streams.
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The share of digital business in total revenues increased to 69% (H1 2023: 63%) – broken down to 77% of recordings and 67% of publishing.
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Operating EBITDA adjusted rose by 35.5% to €122 million (H1 2023: €90 million).
- The EBITDA margin increased to 26.5% (H1 2023: 21.7%).
Speaking about the results in a memo to staff, Coesfeld said: “These numbers are particularly impressive in the context of a changing industry landscape over the last six months. Early on, we recognised the complex challenges ahead and swiftly adapted, especially as music consumption became more fragmented and new disruptors like generative Al emerged, poised to reshape how we create, market, monetise, and consume music. Anticipating these pressures, including rising costs for rights and licences and a lower pace of streaming revenue growth, we developed our BMG Next strategy.
RECORDINGS SUCCESS
BMG spotlighted a number of its successes in the report, including new releases by Jelly Roll, Lainey Wilson, Bruce Dickinson, Everything Everything, Sum 41, Crowded House, Pepe and Paco De Lucía, and Lenny Kravitz.
Notably, BMG artists Lainey Wilson (Best Country Album) and Kylie Minogue (Best Pop Dance Recording) were each honoured with a Grammy Award.
BERTELSMANN “BOOST STRATEGY” TAKE AFFECT
BMG made 10 catalogue purchases, bringing its total investments since 2021 to around €900 million.
The catalogues BMG represents generated y-o-y growth of +23%, with some highlights being Bruce Dickinson, Richard Clayderman, Mötley Crüe and Fatboy Slim.
Additionally, its new signings included Mustard, New Kids On The Block, The Script, YG, Aylo, The Cat Empire, Paco And Pepe De Lucia, Florrie, Chayce Beckham and Daniela Alfinito.
These numbers are particularly impressive in the context of a changing industry landscape over the last six months
Thomas Coesfeld
PUBLISHING
BMG publishing operation has played a role in some huge moments of 2024 so far. Its songwriters contributed to 13 songs on Beyoncé’s No.1 Cowboy Carter album, while Eminem’s No.1 single Houdini was co-written by BMG writers songwriters Steve Miller, Anne Dudley, and Trevor Horn.
Other success included: Cody Johnson’s The Painter (a No.1 single co-written by BMG songwriter Kat Higgins) and Frank Turner’s Undefeated (a No.1 album on the UK Independent Albums Chart).
BMG’s re-signings for the period included KT Tunstall, Diane Warren. Cirque Du Soleil, Bunt, Tyron Hapi, Jelly Roll, Jaro Omar, Yoshi Breen, Kat Higgins, Martin Benech and more.
PARTNERSHIPS
BMG used the report to draw attention to a host of its recent partnerships, including one with the TUM School of Management’s GenAI Lab at Munich’s Technical University. The successfully launched pilot program used “generative AI to optimize the creation and performance of multi-modal marketing assets, yielding positive initial results to date.”
BMG Production Music also signed a global synchronisation agreement to provide production music for Amazon MGM Studios.
Back in July, Thomas Coesfeld was made a member of the Bertelsmann executive board. The supervisory board of the international media, services and education company appointed the CEO of the BMG music division to the group executive board with immediate effect.
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