BMG Reports Best-Ever Half-Year Results, CEO Says Company ‘Outpaced the Market in Three Core Territories’

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With overall revenue growth of 9% and a 7% gain in EBITDA, BMG boasts of its best first half since parent company Bertelsmann returned to the music business with a new-look model in 2008. While the…

boasts of its best first half since parent company Bertelsmann returned to the music business with a new-look model in 2008. While the pandemic stymied growth in music publishing, BMG’s core business, a 29.4% uptick by recorded music carried the day for the fiscal period that ended June 30.

MRC Data reported unit-based growth of 13.5% for H1 in the U.S. in July; the revenue-based H1 summary from the Recording Industry Assn. of America won’t arrive until early next month. Earlier this month, the German Music Industry Association flagged 12.4% growth for the first six months of the year. In fact, BMG is on the hunt for more publishing assets, through a partnership with private equity investor KKR & Co. “Earlier this month we did our first substantial deal under this arrangement, in the eight-figure millions,” Masuch says. “We have four further deals in due diligence and a pipeline of 71 in which we are potentially interested with an aggregate value of just over €1bn. Across the market we believe music asset sales are running around 50% ahead of 2020’s number.

 

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