BMG Reports 25% Revenue Jump For H1 2022 As Catalog Expenditures Triple

Photo Credit: BMG

Photo Credit: BMG

BMG achieved a more than 25 percent year-over-year (YoY) revenue increase during the first half of 2022, according to a newly released earnings report.

This and other noteworthy performance stats for Berlin-headquartered BMG came to light in a just-published analysis from its Bertelsmann parent company. Covering Q1 and Q2 of 2022, as mentioned, the concise breakdown shows that BMG generated €371 million (currently $373.52 million) during the six-month stretch.

The figure marks a 25.34 percent hike from H1 2021’s €296 million ($298.01 million) in BMG revenue (higher-ups said that the jump had derived in large part from growth on the recorded side), and Bertelsmann likewise pinpointed an almost 50 percent YoY operating EBITDA boost for BMG, at €73 million ($73.46 million).

By market, Bertelsmann indicated that BMG had pulled down €30 million in Germany (up €11 million YoY), €27 million in France (up €16 million), €33 million in the United Kingdom (down €12 million), €48 million in “other European countries” (up €14 million), €203 million in the United States (up €43 million), and €29 million in all other nations (up €3 million).

Moreover, BMG is said to have achieved 69 percent of its revenue from digital – execs have unveiled several well-received physical releases this year – compared to 62 percent in H1 2021. The lion’s share of BMG’s total H1 2022 revenue (€341 million) came from “rights and licenses,” against €28 million from “own products and merchandise” and the remaining €1 million from “services,” per the resource.

BMG’s double-digit H1 2022 revenue and EBITDA growth arrives as the company is making a number of acquisitions, including other businesses as well as catalogs.

On the latter front, BMG has scooped up the song rights of Simple Minds, John Lee Hooker, Jean-Michel Jarre, and Primal Scream to this point in 2022, with plans to deploy additional capital yet on music IP moving forward.

“BMG tripled its spending on catalog acquisitions in the first half of the year compared with the same period last year,” the document reads. Though the precise sum associated with the purchases isn’t featured in the half-year analysis, Bertelsmann did relay that “investments in intangible assets came to €247 million (H1 2021: €166 million) and were attributable primarily to BMG for the acquisition of music catalogs and to RTL Group for investments in film rights.”

Meanwhile, BMG towards August’s start announced the purchase of Telamo, billed as “Germany’s largest independent record label.” And in terms of expansion initiatives through 2022’s initial eight months, the company has quietly opened a creative complex in Los Angeles and debuted an office in Mexico City, representing one component of a broader effort to develop a greater presence in Latin America.