Australian publishing division helped BMG’s global double-digit revenue hike to €507m

BMG Rights Management, also known as BMG, cited the success of its Australian publishing division again as a key factor to its global growth in 2017.

BMG’s global revenues were up 1.5% to €507 million (A$$89.4 million) according to an earnings report by its German media conglomerate parent company Bertelsmann.

Performance outside Germany was particularly strong, registering a 23.1% growth in the period.

BMG has offices in 12 core markets: USA, UK, Germany, France, Scandinavia, Benelux, Spain, Italy, Australia, Brazil, China and Canada, with over 750 employees worldwide.

The report said BMG’s increase was “attributable to higher revenues across all market segments and regions through organic growth and acquisition, especially in the recorded music business and in the British, US and Australian publishing business”.’

BMG opened in Australia in March 2016 under managing director Heath Johns.

Australian publishing signings include Jet, The Living End Peking Duk (ex-ANZ), Wolfmother and KLP, while it bought the lucrative Alberts record and publishing catalogue in 2016.

BMG’s biggest market remains the United States, which represents 44% of the revenue – or €224 million ($362 million)

The UK was second, generating €120 million ($193.9 million).

Through 2017, BMG spent US$2.3 million on acquisitions.

US$100 million was for Nashville-based Broken Bow Records, home of country superstar Jason Aldean, two offshoot labels, and music publisher.

Among its signings were Kylie Minogue, Chrissie Hynde of The Pretenders, Avril Lavigne, Fergie and Nickelback and enjoyed success with Rick Astley, Blink-182 and Morrissey.

In the summer of 2017, BMG songwriters were responsible for each of the top three songs in the Billboard Hot 100 for 13 consecutive weeks.

BMG makes up just 3% of Bertelsmann’s revenue.

In its report, Bertelsman said it fitted into its strategy of developing “a faster growing, more digital, more international and more diversified” portfolio.

These include book publishing houses Penguin Random House, and Gruner + Jahr; radio, TV company and media company RTL Group

Bertelsman’s revenue grew 1.5% to €17.2 billion ($27.7 billion). Group profit was up to €1.2 billion ($1.9 billion) from €1.1 billion ($1.77 billion) the year before.

BMG, set up nine years ago, is its second foray into music.

The first was Bertelsmann Music Group, also known as BMG.

It was one of the five major labels with a buoyant Australian operation which had John Farnham as its prize signing.

It merged globally with Sony Music to create a 50-50 partnership, before selling out in 2008.

Recently, BMG CEO Hartwig Masuch told Music Week his company was looking to take on the majors on all fronts.

The company has shifted from acquiring new assets to concentrating on working its current assets.