BMG revenues hit $496m in H1 2024, up 12.5% YoY on organic basis
Tuesday 01 October 2024
BMG has reported strong revenue growth for the first half of 2024, with total turnover hitting €459 million (approximately $496 million), marking an 11.1% year-over-year increase, or 12.5% on an organic basis.
The Bertelsmann-owned company attributes this growth to a significant rise in digital income streams, highlighting robust performance in both its recordings and music publishing sectors. Digital revenues now account for 69% of BMG’s total income in H1 2024, up from 63% in the same period last year.
In terms of revenue breakdown, 36% came from recordings, while 62% was generated from music publishing, and 2% from broader rights.
This reporting period also marked the end of Thomas Coesfeld’s first year as CEO of BMG, having taken the reins in July 2023. During his tenure, Coesfeld implemented several strategic changes, including a reorganization of key functions such as international marketing, a global headcount reduction of approximately 10%, a shift to direct digital distribution on platforms like Apple and Spotify, and the divestment of non-core business units like live music promotion and film/TV development. He also emphasized a renewed focus on the U.S. market.
As a result of these initiatives and the strong revenue increase, BMG experienced notable growth in profit margins. In H1 2024, adjusted operating EBITDA rose to €122 million (about $132 million), reflecting a 35.5% YoY increase. Consequently, BMG’s operating EBITDA margin improved to 26.5%, compared to 21.7% in the prior-year period.
Under its 'Bertelsmann Boost' strategy, BMG made 10 catalog acquisitions in H1 2024, bringing total investments in music catalog to around €900 million since 2021.
The company also signed several new artists and songwriters in the first half of the year, including Mustard, YG, New Kids on the Block, and The Script in recordings, and Cirque du Soleil, KT Tunstall, and Tyron Hapi in publishing.
BMG's standout projects in the recordings sector during H1 2024 included new releases from Jelly Roll, Lainey Wilson, Bruce Dickinson, Everything Everything, Sum 41, Crowded House, Pepe and Paco de Lucía, and Lenny Kravitz.
