BMG achieved a more than 25% increase in revenue year-over-year (YoY) in the first half of 2022, according to a recently released earnings report.
This performance statistic and other notable ones for BMG, headquartered in Berlin, were revealed in a just-published article. analysis of its parent company Bertelsmann. Covering the first and second quarters of 2022, as mentioned, the concise breakdown shows that BMG generated €371 million (currently $373.52 million) during the six-month period.
The figure marks a 25.34% jump from BMG’s first-half 2021 296 million euros ($298.01 million) revenue (highs said the jump was largely from growth on the registered side), and Bertelsmann also identified nearly a 50% YoY increase in BMG’s operating EBITDA, to 73 million euros ($73.46 million).
By market, Bertelsmann reported that BMG drew 30 million euros in Germany (up 11 million euros year-on-year), 27 million euros in France (up 16 million euros), 33 million euros in the United Kingdom (down 12 million euros), 48 million in “other European countries” (+ 14 million euros), 203 million euros in the United States (+ 43 million euros) and 29 million euros in all other countries (+ 3 million euros).
Additionally, BMG reportedly earned 69% of its revenue from digital — executives unveiled several well-received physical releases this year — up from 62% in the first half of 2021. The lion’s share of BMG’s total revenue in the first half 2022 (341 million euros) came from “rights and licenses”, against 28 million euros from “own products and goods” and the balance of 1 million euros from “services”, by resource.
BMG’s double-digit H1 2022 revenue and EBITDA growth comes as the company makes a number of acquisitions, including other businesses as well as catalogs.
On the latter front, BMG has reclaimed the rights to songs from Simple Minds, John Lee Hooker, Jean-Michel Jarre and Primal Scream so far in 2022, with plans to deploy additional capital on IP music in the future. .
“BMG tripled its catalog acquisition spend in the first half compared to the same period last year,” the document said. Although the precise sum associated with the purchases is not included in the half-year analysis, Bertelsmann relayed that “investments in intangible assets amounted to 247 million euros (H1 2021: 166 million euros) and were mainly attributable to BMG for the acquisition of music catalogs and to RTL Group for investments in film rights.
Meanwhile, BMG around the beginning of August announced the purchase of Telamo, billed as “Germany’s biggest independent record label”. And in terms of expansion initiatives in the first eight months of 2022, the company quietly opened a creative complex in Los Angeles and opened an office in Mexico City, which is one component of a larger effort to develop a greater presence in Latin America.