BERLIN (CelebrityAccess) — Integrated label and music publisher BMG revealed that the company managed to increase its revenue in the first half of fiscal 2020, despite the ongoing COVID-19 pandemic.
According to the company’s financial filings by parent company Bertelsmann, BMG reported revenue of €282m for the first six months of the year, a modest 4.8% gain over the same period in 2019.
At the same time, earnings before interest, taxes, depreciation, and amortization stayed even with last year at €49m.
BMG attributed the performance to robust performance by the company’s music publishing business and growth in streaming of its recorded catalog, which increased by 49% from the previous year.
Digital accounted for 83% of recordings revenue and 48% of music publishing revenue during the period, BMG said.
The growth was offset by headwinds that included the forced shuttering of 19 of BMG’s offices around the world due to the pandemic, leaving 926 employees working remotely.
“To deliver a record result in the midst of a pandemic is a remarkable achievement. It is a testament to our artist-centric business model, but also to our 926-strong team worldwide who went to extraordinary lengths to maintain service to our artist and songwriter clients,” said BMG CEO Hartwig Masuch.
“Our growth is almost entirely organic. Despite the high levels of M&A in the wider music industry, we have not made a major acquisition since 2017. Our focus is on growing by delivering better, fairer, more efficient services to artists and songwriters. There is no doubt musicians are hurting through the pandemic, particularly with the loss of live business. That puts a particular responsibility on record labels and music publishers to help artists and songwriters maximize their earnings,” he added.