BMG has followed a flurry of recent signings by revealing a strong performance in the first six months of 2017. According to half-year results from parent company Bertelsmann, the music subsidiary continued to grow its business and expand its market position.
Revenues for BMG increased 28% to €233 million (£215m) for the first six months compared to the same period in 2016, which totalled €182m (£168m). According to a statement from Bertelsmann, the revenue growth 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 €40m (£37m), a year-on-year increase of 25%.
During the reporting period, BMG made its biggest single acquisition in the recording business since its launch in 2008, following Bertelsmann’s sale of its 50% stake in Sony BMG to Sony Corporation. The purchase of BBR Music Group (BBRMG) included 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.
“The deal gives BMG a significant position in the country music capital of Nashville, Tennessee – and thus in the lucrative country music market,” said today’s statement.
During 2017, BMG also signed a number of established artists to recording contracts including Avril Lavigne and Fergie in the United States, Kylie Minogue in the UK and Mando Diao in Germany. The publishing division renewed contracts with US singer-songwriter Hillary Lindsey and DJ Khaled.
In the first half of the year, BMG singled out chart successes including shares in the international hits I’m the One, Despacito and Wild Thoughts, as well as Roger Waters’ album Is This the Life We Really Want? (Columbia) – the Pink Floyd co-founder’s first release since moving his publishing from Warner/Chappell to BMG last year.
Since the reporting period, BMG has made further signings including Morrissey and Boy George, as well as scoring a Top 10 album with The Sherlocks’ Live For the Moment, released on the company’s Infectious label.