Bertelsmann, Music Group Enjoy Increased Revenue, Billion-Dollar Profit

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BERTELSMANN enjoyed over €1 billion in profits in 2018, as its revenues rose 2.8% to €17.7 billion, the highest it has been since 2007. The key to the resurgence is digital revenues, which comprise nearly half of all revenue.

For its part, BMG saw significant growth in its revenues and results, especially in its core markets -- the U.S., the U.K. and GERMANY. Its recordings business grew strongly during the reporting year; music publishing enjoyed continuing growth. Despite negative exchange rate effects, BMG’s revenues increased by 7.5% to €545 million, mainly due to organic growth. Operating EBITDA rose disproportionately by 17.3% to €122 million, boosted by the increase in revenues and economies of scale. The EBITDA margin rose to 22.5%. 

“2018 was a successful business year for BERTELSMANN," Chairman/CEO THOMAS RABE said. "We became a faster-growing, more digital, and more International Group. Organic growth is higher than it has been for years, and nearly half of our revenues came from digital activities. Both of these factors demonstrate how far we have come with the Group’s transformation.

“This positive development is an expression of various important decisions taken in recent years," RABE continued. "RTL GROUP invested early in the online video and ad-tech business, and is steadily expanding its video-on-demand offerings. PENGUIN RANDOM HOUSE, the world’s largest trade publishing group, demonstrated the company’s unique creative, sales, and marketing power with its globally coordinated release of ‘Becoming.’ ARVATO’s outstanding results in the past financial year show that the division’s strategic realignment is a success. A strategic milestone last year in this connection was the announcement of the long-term partnership with the SAHAM GROUP in the CRM sector. Our Education division, which we once again massively strengthened with the acquisition of ONCOURSE LEARNING last year, also saw a positive development. We will continue to forge ahead with BERTELSMANN’s transformation and growth in 2019.”

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