Despite maintaining a stable operating EBITDA of €122 million, BMG reported an 8% year-on-year decline in total revenue for the first half of 2025, with figures dropping from €459 million to €424 million. The company’s organic revenue, which excludes the impact of acquisitions and divestitures, showed a less severe decrease of 4.4% compared to the same period last year. This decline primarily stems from BMG’s strategic decision to divest non-core operations, particularly in the live music sector, as part of its transformation toward a more digital-focused business model.
BMG’s strategic pivot to digital focus shows resilience despite 8% revenue decline, maintaining stable EBITDA through deliberate portfolio restructuring.
The music rights company has been deliberately scaling back lower-margin activities to concentrate on its core strengths in digital streaming and publishing. This strategic pivot is already showing promising results, with digital revenue now accounting for 72% of total income, up from 69% in the first half of 2024. Underlying music streaming revenue grew by a high single-digit percentage, helping to counterbalance declining revenues from traditional segments. The company’s unified sync teams have also contributed to strengthening its digital licensing operations with major streaming platforms. BMG’s use of AI-powered tools creates efficiencies for artists and songwriters while enhancing their digital distribution capabilities.
BMG’s profitability metrics tell a more optimistic story than the revenue figures suggest. The company’s EBITDA margin increased by approximately two percentage points to reach 29% in H1 2025, up from 27% in the same period last year. This improvement reflects BMG’s successful implementation of a more profitable business mix and effective cost control measures. The company has expanded its sync deals for artists, offering lucrative opportunities to license music for films, TV shows, and video games. BMG has also prioritized helping artists claim their streaming profiles to maximize analytics and promotional opportunities across platforms.
The company continues to invest heavily in catalog expansion, completing 17 acquisitions in the first half of 2025 alone. Since 2021, BMG has invested nearly €1.2 billion in music rights, underscoring its commitment to building a sustainable portfolio of high-value assets.
These strategic investments align with the company’s “BMG Next” initiative, which emphasizes a disciplined, digital-first approach to the music business. Through its focus on innovation and technology, BMG aims to better support artists and songwriters while positioning itself as a future-forward music company capable of weathering industry transformations through balanced creativity and technological advancement.
