BMG Experiences Solid Revenue Growth Despite Pandemic
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Music giant BMG reported that it experienced an increase in its revenue in the first half of fiscal 2020 despite the economic downturn of the global COVID-19 pandemic.
This is a positive outlook for the remainder of 2020 for the music operations arm of German conglomerate Bertelsmann music.
According to financial filings by Bertelsmann, BMG reported revenue of €282m for the first half of the year.
This posed a solid 4.8% gain over the same period last year. Earnings before interest, taxes, depreciation, and amortization remained steady with 2019’s pace at €49m.
BMG stated that the solid performance was spurred on by the company’s music publishing business and continuing growth in the streaming consumption of its recorded catalog, which skyrocketed by 49% from 2019.
Digital consumption accounted for almost 83% of BMG’s recordings revenue and 48% of music publishing revenue during the period.
The reported growth for the first half of 2020 however, was offset by headwinds that consisted of BMG closing 19 offices across its global network due to the pandemic.
“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.
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