Bertelsmann Announces BMG Revenues Increase 28 Percent For First Half Of Year

Bertelsmann credits recent developments in Nashville with a portion of its increase in global revenue for the first half of 2017 of €8.1 billion.

In results for the first six months of 2017, the music sector of the company, BMG, increased revenues by 28 percent to €233m (H1 2016: €182 million) while operating EBITDA increased by 25 percent to €40m (H1 2016: €32 million), noting the vast majority of growth was organic rather than through acquisition.

“BMG continu[es] to outpace the market and competitors, paying out more of our revenue in royalties to artists and songwriters than any of the established players (while generating a better return),” said Paki Newell, Senior Director, U.S. Corporate Communications.

The returns are credited in large part due to Nashville with BMG’s biggest single acquisition in the recording business since its launch in 2008. Credit was given to BBR Music Group (Broken Bow Records, Stoney Creek Records, Wheelhouse Records and Red Bow Records, and music publisher Magic Mustang Music) and the Bertelsmann music subsidiary also achieving success in the publishing segment by renewing contracts with songwriter Hillary Lindsey.

Additional mention is made for BMG’s earnings in the United Kingdom Europe and Australia. BMG signed contracts with international artists such as Avril Lavigne, Fergie, Kylie Minogue in the UK and Mando Diao in Germany. The company additionally experienced chart success with clients Nickelback (records) and DJ Khaled (music publishing), with significant chart success including shares in the international hits “I’m the One,” “Despacito” and “Wild Thoughts” and Roger Waters’s album “Is This the Life We Really Want?”

Read more at bertelsmann.com.