BERLIN, Germany (CelebrityAccess) — BMG revealed the financial results for the first half of 2022, with their profit margin reaching a record high for the period.
According to BMG, the music company posted revenue of €370m for the first half of 2022, up 25% from the same period last year. Per BMG, 60% of H1 revenue was derived from music publishing, while recorded music accounted for 40%.
EBITDA margin reached 19.8% during the time period, marking an all-time high for the first half, the company said.
At the same time, spending on catalog acquisitions tripled from H1 2021. Those acquisitions included rights packages from John Lee Hooker and Primal Scream, among others; The estate of the late Beatle George Harrison, and Dark Horse Records.
During the first half of 2021, BMG also launched an expansion in Mexico and expanded its focus on the film sector, launching three documentaries: DIO: Dreamers Never Die, Angelheaded Hipster: The Songs of Marc Bolan & T. Rex, and Moonage Daydream, the first film about David Bowie to be endorsed by his estate
BMG also forayed into the world of music productions with the launch of Ku’damm 56, a state production based on a popular German television show. The production sold 150,000 tickets and was extended until February 2023; additionally, BMG launched two musicals in the US, Punk Rock Girl! and May We All.
“The big news in these results is our 25% growth, our highest first-half growth rate to date. That’s good news not just for us, but also for our artist and songwriter clients because driving revenue growth for them is the key reason we are here. Of course there’s more to it than that – you also have to speed and optimize the flow of revenue onwards to clients. That’s the really difficult bit and that’s the focus of our attention right now. At a time when musicians are suffering, it’s not a bad thing to be known for your ability to collect and distribute money to artists and songwriters swiftly and efficiently,” said BMG’s Chief Financial Officer Thomas Coesfeld.
“The commitment of our parent company to BMG has been incredible. When we announced our alliance with KKR last year, it was about amplifying our firepower in the market. In reality, because of the support of Bertelsmann, we have needed less outside finance than expected and have done most deals alone. Naturally we still value our relationship with KKR and other financial partners and expect to do further deals with them in the future,” he continued.
“The music market in 2022 is more fragmented than it’s been in two decades. That’s great news for artists and songwriters – it gives them more choices – and it’s great news for anyone who wants to build a business. It’s less good news for anyone who wants to preserve a market position,” Coesfeld concluded.
