BMG’s annual revenue increases by 30.6% in 2022

Annual income from bmg to reach EUR €866 million by 2022, representing an increase of €203 million, or 30.6%, year-on-year. The latest fiscal results from the Germany-based music company were revealed on March 30 by its parent, Bertelsmann.

In recent years, we have become accustomed to seeing BMG’s annual revenue increase by tens of millions of euros at a time, but not by hundreds of millions, according to analysis from MBW.

In fact, the €203 million increase in 2022 represents the fastest year-on-year growth in the company’s history since its founding as ‘new’ BMG in 2008.

The jump in year-over-year revenue has not hurt BMG’s profit margins: the company’s EBITDA margin in 2022 is 22.5%, an increase of almost one point compared to its 2021 annualized margin of 21.7%.

In its annual fiscal report, Bertelsmann attributed BMG’s strong revenue and EBITDA growth in 2022 to “organic growth in its recording and publishing business… supported by a boost in investment.”

The “offensive investment” involved a record €509 million spent on acquiring music catalogs and artist signatures by 2022, said Bertelsmann.

In these figures, Bertelsmann confirmed that BMG spent €380 million to acquire the music catalog, compared to €281 million in the previous year (2021).

By 2022, according to Bertelsmann, BMG will spend €188 million to acquire a music catalog in the United States, €113 million for a catalog in the UK, €27 million for a catalog in Germany, and €52 million for a catalog in other countries.

During 2022, BMG made 45 acquisitions in the music catalog sector; the purchase includes catalog/licensing rights to artists such as Peter Frampton, Jean-Michel Jarre, Fools Garden, Harry Nilsson, Simple Minds, Primal Scream and Chris Rea. BMG also acquired German record label Telamo in 2022.

BMG’s growth, however, shouldn’t be tied solely to catalog purchases: Bertelsmann says year-over-year organic (i.e., not-acquisition-based) growth in BMG revenue to reach 22.8% year-over-year by 2022.

More than half (53.9%) of BMG’s annual revenue in 2022 is generated in the United States. Another 8% is generated in Germany, while 12.2% is generated in the UK.

Revenue from BMG’s recorded music business to increase 38% year-over-year in 2022; the company’s music publishing business increased 26% year over year, according to Bertelsmann.

The highest-grossing projects on the music side of record companies include releases from Jason Aldean, Louis Tomlinson, Mötley Crüe, 5 Seconds of Summer, Backstreet Boys, Buena Vista Social Club, Kylie Minogue and Bryan Adams.

New record deals/extensions were made that year with artists such as Rita Ora, Logic, Julian Lennon, Marteria, Stefflon Don, Nickelback and Jason Aldean.

In the publishing business, catalogs from Bruno Mars, Mick Jagger and Keith Richards, Juice WRLD, Kurt Cobain and Roger Waters generate very high incomes, according to Bertelsmann. BMG signed a new deal/renewal in 2022 with authors like Halsey, Elvis CostelloRobin Kadir, Bazzazian, Slowthai, Jessie Reyez, Afrojack, Montez and Lucry.

Roderick Gilbert

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