BMG Music Parent Reports First-Half 2017 Revenues Rise

Financials

BMG MUSIC GROUP parent company BERTELSMANN has reported financial results for the first half of 2017, noting "a first-half operating Group result of over €500 million for the first time in its history," adding "BERTELSMANN increased its Group revenues by 2.1% to €8.1 billion in the reporting period. Organic growth improved to 1.4%."

It's been an active time for the company in the music business. BMG acquired the BBR MUSIC GROUP in NASHVILLE, "the largest single acquisition in the recordings business since the music subsidiary was founded. The company also signed prominent artists such as KYLIE MINOGUE and FERGIE." 

BERTELSMANN’s music subsidiary, "continued to grow its business and expand its market position in the first six months of the 2017 financial year. Revenues increased by 28% to €233 million. This development was driven primarily by the recording and music publishing business in the UNITED KINGDOM and the UNITED STATES, as well as the music publishing business in AUSTRALIA. Operating EBITDA was €40 million, a year-on-year increase of 25%. With the acquisition of the BBR MUSIC GROUP (BBRMG) in the reporting period, BMG made its biggest single acquisition in the recording business since its launch in 2008. BBRMG includes the country music labels BROKEN BOW RECORDS, STONEY CREEK RECORDS, WHEELHOUSE RECORDS and RED BOW RECORDS, as well as the music publishing company MAGIC MUSTANG MUSIC. It also represents the rights to well-known country music artists like JASON ALDEAN and DUSTIN LYNCH."

Chairman/CEO THOMAS RABE said, “BERTELSMANN looks back on a successful first half. The increase in revenues and earnings, as well as our improved growth profile, are the result of the systematic implementation of our strategy. The PENGUIN RANDOM HOUSE ownership share increase, which we have been preparing over the past few months and will complete in the second half of the year, is especially worth noting. BERTELSMANN will possess a strategic three-quarters majority in the world's largest trade publishing group – the best possible conditions for successfully further developing this core business that is part of our identity.

« see more Net News