BMG Reports Annual Income Growth in 2024
BMG recorded an annual income of 963 million euros (1.04 billion US dollars) in 2024, reflecting a growth of 6.4% year or an organic increase of 8.1% year.
These figures align with the newly released annual financial results from the music company’s parent, Bertelsmann, published today (March 31).
Record Adjusted Operational EBITDA
Adjusted Operational EBITDA for BMG achieved a record high of 265 million euros ($ 287 million), marking an increase of 37% year compared to last year’s equivalent of 194 million euros (210 million dollars).
The EBITDA margin stood at 27.5% in 2024, a significant increase from the 21.4% margin reported in 2023.
Bertelsmann attributes last year’s profit surge at BMG to “positive outcomes from digital direct sales, strategic focus on key operations, and substantial investments.”
The share of BMG’s revenue from the digital sector rose to 68% of total revenue in 2024, up from 63% in the previous year.
Geographic Breakdown of BMG Revenue
The geographic breakdown reveals that the United States remains BMG’s largest market, contributing 49.6% of total revenue in 2024, slightly down from 51.5% in 2023.
The United Kingdom contributed 12.9% of BMG’s revenue, while Germany, the home market of BMG/Bertelsmann, accounted for 8.1%.
France made a contribution of 6.0%, and other European countries collectively represented 16.3%.
Countries outside the US and the UK/EU earned 7.1% of total revenue.
In 2024, BMG invested approximately half a billion euros acquiring catalogs and signing songwriters and artists as part of its parent company’s “Boost” program.
Specifically, BMG invested 243 million euros ($ 263 million) in musical catalog acquisitions in 2024, compared to 197 million euros ($ 213 million) in 2023.
Of the 243 million spent on catalogs in 2024, 210 million euros ($ 227 million) was allocated to various musical catalogs in the United States.
In 2024, BMG signed new agreements with artists, including country superstar Blake Shelton, producers Mustard and YG, as well as newcomers Chase, K. Michelle, and The Script.
In the publishing sector, the company signed or renewed agreements with Carly Pearce, KT Tunstall, Tyron Hapi, Ray Dalton, ASDís, Hugel, and Leony.
BMG also established a strategic partnership with Tomorrow’s Music for rights management, Cirque du Soleil for publishing catalog management, and Amazon MGM Studios for production music services.
On the recorded music side, BMG celebrated successes with releases from George Harrison and Brian Ferry, along with new music from Leoni Wilson, Amount 41, Mustard, Travis, Crowded House, and Rita Ora. Notably, Kylie Minogue achieved her tenth No. 1 on the UK album chart with Stress II, while country star Jelly Roll earned his first Billboard 200 No. 1 with Beautifully Broken.
Additionally, Eminem released the hit Gudini through clients Steve Miller, Trevor Horn, and Anne Dudley.
The company’s songwriters contributed to 13 tracks on Beyoncé’s Grammy-winning album Carter Cowboy, and BMG’s songwriter Bruno Mars set a new record for monthly listeners on Spotify with his global hit Die With a Smile, a duet with Lady Gaga.
Strong results continue into the second year of Thomas Coesfeld’s tenure as CEO, during which he introduced significant structural changes under the BMG NEXT strategy.
In 2024, BMG continued to evolve its distribution model by integrating digital distribution within major platforms like Spotify and Apple Music, while physical distribution was shifted to the Universal Music Group.
The company also implemented numerous organizational changes aimed at enhancing efficiency, focusing on its primary publishing and recorded music segments and creating global teams for catalog management, marketing, distribution, and analytics.
By the end of 2024, BMG’s workforce was reduced to 1020 employees, down from 1073 at the end of 2023, reflecting ongoing operational optimization that began with Coesfeld’s appointment in mid-2023.
Emphasis on Technology and AI Initiatives
BMG announced the launch of next-generation “Copyright Management Platforms and Monetization” along with a new sales processing platform for musical publishing and recorded income in 2024.
The company also enhanced its “MyBMG” platform with customer-oriented features.
“BMG is facing heightened risks associated with the use of artificial intelligence, particularly regarding inadequate regulatory frameworks for content creation and monetization.”
Bertelsmann FY 2024
The music company is pursuing “generative AI initiatives” to drive innovation in products and processes, including new AI tools designed to enhance digital marketing and music discovery.
Bertelsmann’s report acknowledges the “growing risks associated with artificial intelligence” for BMG, specifically noting “inadequate regulations surrounding content creation and monetization” as a significant concern for its repertoire.
All EUR-USD currency conversions in this report were conducted using average exchange rates based on IRS data. Bertelsmann defines adjusted EBITDA as EBITDA, adjusted for special items that “primarily include impairments and changes in impairments, fair value measurements, reorganization costs, and investment disposals … special items related to recoveries in the real estate sector are not included.”
