BMG reported high revenue of 905 million euros ($998 million) in 2023, as catalog acquisitions and the growth of the publishing division from hit songs and albums by Bebe Rexha, the Rolling Stones and Lewis Capaldi contributed to 5.7% organic revenue growth.
Adjusted operating earnings before interest, taxes, depreciation and amortization (EBITDA) — BMG's preferred measure of earnings — were flat at 194 million euros ($214 million, based on December 31, 2023 exchange rates) compared with a year earlier 195 million euros ($208 million, based on year-end exchange rates), as the German music company incorporates a series of changes introduced by new CEO Thomas Coesfeld. Coesfeld said its strategy improves revenue and operating EBITDA going forward, two metrics the company said are set to grow by about a third from 2021 to 2023.
“Many of these changes have an immediate impact,” Coesfeld said in a letter to staff seen by Advertising sign. “In the first two months of 2024 we have already seen a strong double-digit increase in revenue and an increase in EBITDA compared to the previous year.”
Since Coesfeld took the helm in mid-2023, BMG has announced a plan to take over digital sales of its artists' music, a new physical distribution deal with UMG and increased technology investment for a new mobile app aimed at to customers, improved analytics and faster claims processing.
Catalog acquisitions have been a key element of Coesfeld's contributions since becoming BMG's chief financial officer in 2021. Backed by the deep pockets of its parent company, European media group Bertelsmann, BMG continued its steady pace of purchases in 2023 with 30 catalogs including those of The Hollies, Jet, Dope Lemon, Martin Solveig and Paul Simon's musical interests in Simon & Garfunkel recordings.
Notable hits for the label in 2023 included “I'm Good (Blue),” co-written by Bebe Rexha, and “Boy's A Liar Pt. 2,” by the BMG songwriter Masha berries and performed by Pink Pantheress and Ice Spice, and its release Hackney Diamonds by the Rolling Stones and Torn by the desire to be sent from heaven by Capaldi.
Country music was a big driver for the BMG label in 2023 thanks to Jason Aldean's “Try That In A Small Town,” which reached No. 1 on Billboard's Hot 100 chart during the first week of August. and three top country chart hits. Jelly Roll, including “Save Me,” was recorded with Lainey Wilson, another of BMG's country stars.
Here are some of BMG's highlights for 2023:
- Adjusted operating EBITDA was flat at 194 million euros ($214 million) from 195 million euros ($208 million) a year earlier.
- From 2021 to 2023, revenue grew more than 36% and adjusted operating EBITDA grew more than 34%.
- The EBITDA margin was 21.4 percent compared to the previous year's 22.5 percent.
- BMG made 30 catalog acquisitions in 2023.
