Business

BMG’s annual revenue increased 10.1% to $784 million in 2021

BMG had a turnover of more than three-quarters of a billion dollars in 2021.

According to newly published financial figures from BMG parent company Bertelsmann, the music company generated annual sales of 663 million euros last year. That was 10.1% more than the comparative value from BMG from 2020.

BMG’s key earnings metric, operating EBITDA, rose 5.4% year-on-year to €144 million ($170 million) in 2021.

(MBW used 2021 IRS average annual exchange rates for the EUR-USD calculations above.)



The raw numbers aren’t the only interesting thing about BMG’s 2021 performance.

For example, the company says it spent as much on acquisitions in 2021 as it did in the previous three years combined.

It also says it’s made 10 “major acquisitions” in the past year, but has only publicly announced four of them (those believed to be the takeovers of rights from Tina Turner, Mötley Crüe, ZZ Top, and John Legend).

Following today’s release of the results, Hartwig Masuch, CEO of BMG (pictured), told MBW: “This is a transformational phase for BMG as we add some really significant catalogues. Think Tina Turner, Motley Crüe and ZZ Top, and then realize we only announce a fraction of the deals we actually close.

“It’s one thing to spend money; it is another to know what to do with the acquired asset. I am pleased to say that all of our key investments for 2021 are exceeding expectations.”

Masuch added: “I guarantee it won’t be an issue at the Grammy parties in Vegas this weekend, but the battlefield ahead has nothing to do with chart positions or new artists, it’s about quality of service, efficiency and price.

“No sane investor will spend $250 million or $300 million on a catalog unless they can optimize it at a reasonable cost. It may not be fun, but it is an economic reality.”

BMG says that while pandemic lockdowns impacted its publishing service revenue in 2021, its overall publishing business saw revenue increase more than 20% year over year in January and February 2022.

“No sane investor will spend $250 million or $300 million on a catalog unless they can optimize it at a reasonable cost. It may not be fun, but it is an economic reality.”

Hartwig Masuch, BMG

BMG’s EBITDA reflected a 21.7% annualized profit margin last year.

Masuch added: “We shouldn’t be surprised if the competition catches up. When we started talking about fairness and transparency they looked at us like we were crazy and now they all do it or at least say they do.

“When we started getting a margin of over 20% that was pretty much unheard of for a music company, but now some of them are catching up.

“However, I am confident that we are quite unique in treating artists fairly and with respect and still achieve a margin of over 20%.”music business worldwide

https://www.musicbusinessworldwide.com/bmg-annual-revenues-grew-10-1-to-784m-in-2021/ BMG’s annual revenue increased 10.1% to $784 million in 2021

Fry Electronics Team

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