BMG Reports Record Profitability for 2024
On Monday, BMG, a music major under the ownership of German media titan Bertelsmann, announced impressive financial results for 2024. The company achieved a remarkable organic revenue growth of 8.1 percent, with total revenue climbing 6.4 percent to €963 million (approximately $1.04 billion). This growth is attributed to the successful implementation of its BMG Next strategy, which emphasizes strong organic growth and investments in the music publishing and recorded music sectors.
Impressive Digital Revenue Growth
Digital revenue surged by 16 percent, representing 68 percent of the company’s total revenue, compared to 63 percent in 2023. BMG attributed this increase primarily to the rise in streaming activity. The company also reported a substantial boost in adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA), which soared by 37 percent to €265 million ($287 million). Notably, the EBITDA margin reached an all-time high of 28 percent, up from 21 percent the previous year, showcasing the company’s operational efficiency.
Success in Recorded Music
BMG highlighted several key successes in its recorded music division, including the release of classic catalog titles from iconic artists like George Harrison and Bryan Ferry. The label also celebrated new music from contemporary stars such as Lainey Wilson, Sum 41, Mustard, Travis, Crowded House, and Rita Ora, who hosted the MTV EMAs for the third consecutive year in 2024. Additionally, the company unearthed early recordings from Spanish flamenco legends Paco de Lucía and his brother Pepe. Meanwhile, Kylie Minogue marked her 10th number one album in the U.K. charts with *Tension II* and country artist Jelly Roll made headlines by topping the Billboard 200 for the first time with his album *Beautifully Broken*.
Achievements in Music Publishing
In the realm of music publishing, BMG is proud of its successful songwriters, including D’Mile, Pashanim, and Blossoms. The company noted that BMG writers made a significant contribution to Eminem’s hit *Houdini*, which ranked among this year’s major streaming successes. Furthermore, their contributions to Beyoncé’s globally acclaimed album *Cowboy Carter*, which earned The-Dream a Grammy for Album of the Year, were highlighted. Bruno Mars also achieved a new milestone by setting a Spotify record for monthly listeners, driven by the popularity of the duet *Die With A Smile* alongside Lady Gaga, which quickly amassed 1 billion streams.
Strategic Investments and Growth Strategy
BMG’s CEO, Thomas Coesfeld, reflected on the company’s fruitful 2024, crediting the BMG Next strategy for a substantial leap in performance amidst a rapidly changing music landscape. He emphasized the importance of enhancing go-to-market practices, such as in-house digital distribution and significant investments in talent, catalog acquisitions, and technology development.
Moreover, BMG revealed its investment of approximately €500 million ($540 million) in catalog acquisitions and artist signings throughout the fiscal year 2024. This strategic initiative, aimed at bolstering its premium rights portfolio, saw BMG engaging in the acquisition of 24 catalogs, increasing its total investments since the inception of the Boost program in 2021 to over €1 billion ($1.08 billion). As part of enhancing operational efficiency, BMG has adopted a “global where possible, local where needed”approach across various functions, strengthening its service and accountability to artists while improving operational dynamics in both publishing and recorded music sectors.
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