BMG Reports Strong Financial Performance in H1 2025: A Digital-First Strategy in Focus

In a notable financial report released for the first half of 2025, BMG has showcased a robust operational performance, highlighted by a significant EBITDA margin increase and strategic advancements in its digital business model. The company’s emphasis on digital platforms and innovative practices has been pivotal in navigating challenges in the evolving music industry landscape.

Strong Financial Highlights

BMG’s financial performance in H1 2025 was marked by a 29% EBITDA margin, reflecting an increase of 2 percentage points compared to H1 2024. This growth was attributed to an improved business mix and effective cost controls, maintaining an operating EBITDA of EUR 122 million despite shifts in market dynamics across core regions.

While the EBITDA margin painted a positive picture, BMG experienced a 8% decline in total revenue, amounting to EUR 424 million compared to EUR 459 million in the same period the previous year. This decrease is primarily attributed to a strategic scaling back of lower-margin activities and the divestment of non-core businesses, particularly in live events. The company reported an organic revenue growth of -4%, continuing its focus on enhancing digital income streams.

Strategic Focus on Digital Transformation

BMG’s CEO, Thomas Coesfeld, highlighted the success of the company’s BMG Next business model, which prioritizes a disciplined, digital-first approach aimed at delivering long-term value. “Our strategy is rooted in what we do best – music publishing and recorded music – while continuously building new capabilities to enhance our service,” Coesfeld stated. The company is integrating its Sync and Production Music teams into a unified Sync+ structure to enhance collaboration and customer focus.

A clear emphasis on digital revenues was evident, with 72% of total revenue originating from digital sources, a rise from 69% in H1 2024. By expanding direct licensing agreements with digital service providers, BMG aims to improve access to vital listening data and audience insights.

Embracing Innovation Through Technology

Central to BMG Next’s strategy is the incorporation of Generative AI (GenAI) into business practices, bolstered by partnerships with Google Cloud and OpenAI. These initiatives aim to streamline workflows, enhance marketing efforts, and facilitate the consistent promotion of BMG’s extensive catalog. BMG maintains that innovation must be grounded in human creativity, with these tools designed to empower teams rather than replace them.

Additionally, the company is investing in its Music Rights infrastructure and developing automated systems in Finance and Royalties to optimize operations.

A Continued Investment in Talent

BMG’s investment ambition remains strong, completing 17 acquisitions in the first half of 2025 alone, which brings total investments in music rights catalogs to EUR 1.2 billion since 2021. This strategy has proven effective, with acquired catalogs generating solid returns and catalyzing future growth. Notable signings during this period included OneRepublic, Evanescence, and Olly Murs, among others, strengthening BMG’s position across both recorded music and publishing sectors.

Noteworthy Achievements in Music

BMG’s recorded music and publishing sectors reported impressive performances from a myriad of artists. High-performing tracks from the likes of Wiz Khalifa, Billy Idol, and Jason Aldean, with both Aldean and Blake Shelton marking their 30th No. 1 country singles, underscore the label’s diverse portfolio. Furthermore, Lainey Wilson shone at the 2025 ACM Awards, winning four honors, including Entertainer of the Year.

In publishing, BMG’s songwriters enjoyed chart-topping success, contributing to hits co-written with prominent artists and garnering prestigious accolades such as the GRAMMY Award for Album of the Year for The-Dream’s work on Beyoncé’s latest album.

Conclusion: The Future of BMG

BMG’s solid financial results for H1 2025 signal a positive trajectory driven by strategic digital innovations and a focused investment approach. The company’s ability to adapt to the shifting music landscape while fostering long-term profitability positions it well for the future. As BMG continues to refine its strategies and enhance its service offerings, the potential impact of these changes on the broader music industry ecosystem remains to be seen, offering a glimpse into a dynamic future for music publishing and rights management.

For listeners seeking to explore BMG’s diverse catalog, more details can be found on their official platforms.