September 23, 2021


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BMG reports the best half-yearly results each year

3 min read

With an overall revenue growth of 9% and a 7% gain at EBITDA, BMG prides itself on its best first half since parent company Bartelsman returned to the music business in 2008 with a new look model. The core business, a 29.4% increase by recorded music, carried the day for the fiscal period ending June 30.

Revenue for this period was € 296 million, EBITDA 50 million. Citing releases from Brother Band AJR, British paper KSI and veteran talent Van Morrison and Mick Fleetwood & Friends, BMG said it has developed the industry in each of its core markets, the United States, the United Kingdom and Germany.

CEO Hartwig Masuch told Variety that the results “mean that with a fraction of our competitors’ investments, our artist-friendly business model and expertise means we’ve been able to outperform the market in our three core regions and grow our recording business by 29.4% in one year.” . “

MRC data reported 13.5% of unit-based growth for H1 in the United States in July; Summary of revenue-based H1 from the recording industry Ason. He will not come to America early next month. Earlier this month, the German Music Industry Association showed 12.4% growth in the first six months of the year.

The publishing account accounts for about two-thirds of BMG’s revenue, and there, the revenue was flat, with the company largely attributing COVID’s impact on the live music business.

“The epidemic has clearly hit performance income,” Masuch said. “We are not under any pressure from our shareholders so that the numbers are better than them. We are very confident that the market will come back again. In the meantime, we’ve had consistent success in publishing with iconic writers like DJ Khaled, 220 Kid and D’Mile and Diane Warren, Jagger & Richards and Roger Waters.

In fact, BMG is looking for more publishing assets through a partnership with private equity investor KKR & Co. “Earlier this month we signed our first significant deal under this arrangement, in the eight-figure million,” Masuch said. “We have the due diligence and four more contracts in 711 pipelines where we are likely to be interested in a collective cost of just b 1bn. Across the market, we believe music sales are up nearly 50% from 2020.

BMG often says that it is built on creative-friendly terms, provides more transparency in the revenue expression of songwriters, and allows recording artists to own their own in a manner similar to Cobalt. Masuch took advantage of this positive first-half report to highlight the benefits of a new-look business model and look to the majors.

“There’s more flow in the music market right now than at any time in the history of the music business,” he says. “It may be bad news not only for those in power but also for rivals like BMG. The key to success in catalog attraction is capital access and the ability to work efficiently. We have both. ”

In most company work-to-home modes, BMG noted that it has faced the epidemic without losing 1,001 workers worldwide and has actually added 255 workers since the lockdown condition began last year.

The new BMG is the second music expedition of the German media company Bertelsmann, which made a huge splash in the 16th century when it acquired 755% interest in RCA / Ariola from General Electric. From there BMG was distributed by changing the name of its distributor. In 2004, it merged with Sony Music, but in 2008 its 50% interest sold to Sony for 1.2 billion.

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