Kylie Minogue, Lewis Capaldi help push BMG revenue up 11.4% in 2019

Following a strong performance in 2018, BMG has kept the impetus going, with revenues up 11.4% in the first half of this year.

The music company made €269 million (A$441.7 million) in six months, according to financials released by its parent company Bertelsmann in Germany.

The rise was “driven primarily by organic growth”, said Bertelsmann.

Operating profit for the first half of 2019 increased by 16.7% year-on-year to €49 million ($80.4 million).

The strongest performance came from the recording side.

There were successful releases from Kylie Minogue, Keith Richards, Lil Dicky, Avril Lavigne, Dido, The Cranberries, AJR and Adel Tawil, as well as number-one albums by the UK’s Jack Savoretti and Denmark’s Kontra K.

New record contracts were signed with Natalie Imbruglia, The Shires, Seeed, the Zac Brown Band, Sugar Ray and Richard Marx

The share of total revenues attributable to digital formats increased to 56%, up from 54% in the first half of 2018, “reflecting continuing growth in the digital streaming market.”

In the music publishing segment, successes included Lewis Capaldi, whose worldwide hit ‘Someone You Love’ has sold over three million copies, George Ezra, and Juice WRLD who scored his first US number-one album.

In February, BMG songwriters were behind a record 24 #1 hits across the Billboard charts.

New publishing deals were struck with Cage The Elephant, AnnenMayKantereit and Jason Duke.

The publishing division also extended its relationship with Black Sabbath and Latin label DEL Records and launched the new Trojan Jamaica label.

BMG opened its 15th international office, in Hong Kong, to further strengthen its footprint in the Asian market.