The CEO of publishing and recorded music company BMG has confirmed that the company’s growth in the first six months of this year was mainly driven by organic performance, rather than acquisition.
Hartwig Masuch called the firm’s results – in which it posted a 28% rise in H1 revenues to €233m ($277m) – “an extraordinary achievement”.
As MBW reported earlier today, BMG’s operating EBITDA profit stood at €40m ($48m), a year-on-year jump of 25% – representing a profit margin just above 17%.
Masuch said in a subsequent internal note yesterday (August 31), obtained by MBW: “This is an extraordinary achievement, not just significantly outpacing the market, but also our competitors. Yet again.”
He added: “We have demonstrated that our new and distinctive, ethical approach to the music industry is also a financially successful business.
“We continue to pay out more of our revenue in royalties to artists and songwriters than any of the established players, while also generating a better return. That is a game-changer.
“There is no advantage in being a me-too. Instead we take the strengths of the legacy players as our starting point and their deficiencies as our mission to improve upon.”
Hartwig Masuch (pictured)
“Importantly, the vast majority of our [H1] growth was organic rather than through acquisition. We are working better with what we have. We are signing smarter. We are working projects better.”
Masuch’s note to staff contained an infographic, which you can see below, celebrating BMG’s biggest achievements in the first half of 2017 – including its recorded music signings of Avril Lavigne, Morrissey, Kid Rock and Boy George, amongst others.
“The fact is that if the old music industry worked well, if it really delivered what artists and songwriters want, there would be no room in the market for a new BMG,” added Masuch in his note.
“There is no advantage in being a me-too. Instead we take the strengths of the legacy players as our starting point and their deficiencies as our mission to improve upon.
“Together we will create a better music business.”