BMG generated EUR €963 million (USD $1.04bn) in annual revenues in 2024, up 6.4% YoY or up 8.1% YoY on an organic basis.
That’s according to a new set of annual fiscal results from the music company’s parent, Bertelsmann, published today (March 31).
BMG’s adjusted operating EBITDA reached an all-time high of EUR €265 million ($287m), up 37% YoY compared to the prior year’s equivalent result of €194 million ($210m).
The company’s EBITDA margin hit a record 27.5% in 2024, up significantly from the 21.4% margin posted in 2023.
Bertelsmann attributed last year’s strong profit growth at BMG to “positive effects from digital direct sales, the strategic focus on core businesses and significant investments.”
BMG’s share of revenue from digital business rose to 68% of total revenue in 2024, up from 63% in the prior year.
Revenue breakdown shows continued US dominance
BMG’s geographic revenue breakdown shows that the United States remains the company’s largest market, accounting for 49.6% of all revenues in 2024, down slightly from 51.5% in 2023.
The United Kingdom generated 12.9% of BMG’s revenues in 2024, while Germany, BMG/Bertelsmann’s home market, contributed 8.1%.
France contributed 6.0%, while other European countries represented 16.3%.
Other countries worldwide (outside of the US and UK/EU) accounted for 7.1%.
Significant catalog investments continue
According to Bertelsmann, in 2024, BMG invested “approximately half a billion euros” in catalog acquisitions and artist/songwriter signings as part of its parent company’s ‘Boost’ program.
Within that figure, BMG spent EUR €243 million ($263m) specifically on acquiring music catalogs in 2024, up from €197 million ($213m) in 2023.
And of the €243 million spent on catalogs in 2024, €210 million ($227m) was spent on various music catalogs in the United States.
New signings and release highlights
BMG signed new label deals with artists including country superstar Blake Shelton, producers Mustard and YG, plus New Kids on the Block, Chace, K. Michelle, and The Script in 2024.
In publishing, the company signed or extended agreements with Carly Pearce, KT Tunstall, Tyron Hapi, Ray Dalton, Ásdís, Hugel, and Leony.
BMG also entered strategic partnerships with Tomorrowland Music to administer its music publishing rights, with Cirque du Soleil to manage its publishing catalog, and with Amazon MGM Studios to provide production music.
In recorded music, BMG achieved success with catalog releases from George Harrison and Bryan Ferry alongside new releases by Lainey Wilson, Sum 41, Mustard, Travis, Crowded House, and Rita Ora. Kylie Minogue reached No.1 on the UK album chart for the tenth time with Tension II, while country star Jelly Roll earned his first Billboard 200 No.1 with Beautifully Broken.
On the publishing side, Bertelsmann said that BMG controls a majority share of Eminem’s hit Houdini through clients Steve Miller, Trevor Horn, and Anne Dudley.
The company’s songwriters also contributed to 13 songs on Beyoncé’s Grammy Award-winning album Cowboy Carter, while BMG writer Bruno Mars set a new record for monthly listeners on Spotify fueled by the global smash hit Die With A Smile, a duet with Lady Gaga.
BMG’s strategic restructuring continues to pay dividends
The impressive results come in the second year of Thomas Coesfeld‘s tenure as CEO, during which he has implemented significant structural changes as part of the company’s “BMG Next” strategy.
In 2024, BMG continued to transform its distribution model, moving digital distribution in-house for major platforms, including Spotify and Apple Music, while relocating physical distribution to Universal Music Group.
The company also made “numerous organizational adjustments” to increase efficiency, focusing on its core publishing and recorded music segments while establishing global teams for catalog, marketing, distribution, and analysis.
BMG’s headcount decreased to 1,020 employees by the end of 2024, down from 1,073 at the close of 2023, reflecting a continued streamlining of operations that began since Coesfeld took over as CEO in mid-2023.
Technology and AI initiatives
BMG reported launching a “next-generation copyright management and monetization platform” and a new sales processing platform for music publishing and recorded music income in 2024.
The company also optimized its “myBMG” platform with client-focused features.
“BMG is confronted with growing risks in connection with the use of artificial intelligence, especially due to the currently inadequate regulatory conditions regarding the creation and monetization of content.”
Bertelsmann FY 2024 report
The music company has been pursuing “Generative AI initiatives” to promote product and process innovations, including new AI tools to improve digital marketing and music discovery.
Bertelsmann’s report acknowledges “growing risks in connection with the use of artificial intelligence” for BMG, citing “inadequate regulatory conditions regarding the creation and monetization of content” as a particular concern for its repertoire.
All EUR-USD currency conversions in this report have been made at annual averages as per IRS data. Bertelsmann says it defines adjusted EBITDA as EBITDA omitting special items, which “primarily include impairment losses and reversals of impairment losses, fair value measurements, reorganization expenses and results from disposals of investments… Not included in the special items are disposal effects of real estate transactions. To preclude a double adjustment, amortization/depreciation, impairment and reversals already included in the special items are eliminated by means of a correction.”Music Business Worldwide
