BMGs 2025 Profit, Streaming Subscription Revenue Grows, Total Revenue Slips

BMG reported on Thursday (March 26) that core profitability and digital revenue grew for the Berlin-based company in 2025, although a divestment from its live operations contributed to a year-over-year decline in overall revenue.

BMG reported earnings before interest, tax, depreciation and amortization (EBITDA) margin — a closely watched measure of operating profit and efficiency — rose four percentage points to 32% compared to the year prior on adjusted operating EBITDA of 284 million euros ($334 million). Total revenue declined 7% to 900 million euros ($1.06 billion) from 963 million euros ($1 billion) in 2024, which the company said was primarily due to divestments of non-core businesses, including two live companies. Excluding that, BMG said revenue declined 2% on an “organic” basis, mainly due to the challenging foreign exchange rate in 2025 when the strength of the euro reduced the value of dollar-denominate income.

“[Last year] was a transformational year for BMG, defined by disciplined execution,” CEO Thomas Coesfeld said in a statement. “Delivering a record EBITDA margin …while significantly increasing EBITDA in absolute terms demonstrates the strength and scalability of our operating model and reflects the dedication of our global teams in driving sustainable long-term growth for our artists and songwriters.”

BMG is in talks to acquire a majority stake in rival record label and publishing company Concord in a deal that could top $7 billion, Billboard reported in January. Both companies have declined to comment on the matter, and BMG did not provide further information on Thursday.

This marks the first year-over-year decline in revenue since at least 2021, when Coesfeld joined BMG as chief financial officer. The company has steadily grown revenue since that year, when it generated 663 million euros ($784.13 million).

CEO of BMG since 2023, Coesfeld has been appointed as the next chairman and CEO of BMG’s global parent company Bertelsmann starting in January. Coesfeld has said he plans to remain involved with BMG for the long term.

Coesfeld has prioritized digital revenue, improved royalty collections from digital sources like YouTube and increased the efficiency of their digital distributions by ending BMG’s contract with external provider Warner Music Group’s ADA. Digital revenue now makes up 71% of the company’s revenue overall, up from 68% in 2024, and BMG reported double-digit growth in recorded music streaming subscription revenue. Specific figures for streaming subscription revenue were not disclosed, as BMG’s earnings are reported as part of parent company Bertelsmann’s earnings.

BMG announced it was getting out of the live business in 2023 with the sale of its stakes in Karo and Undercover. BMG first invested in live music in 2020 when it acquired a majority stake in Undercover, a concert promoter. In 2021, BMG acquired a majority stake in Karo, best known for its Taubertal-Festival.

In 2025, BMG expanded its portfolio of music copyrights with 30 acquisitions, including its biggest ever single deal, Jason Aldean’s catalog. BMG said in September it acquired the country superstar’s recorded music catalog, as well as stakes in the recorded catalogs and publishing rights of some 23 artists and songwriters in a $250 million deal that included more than a thousand songs. Funding for the acquisitions comes from Bertelsmann, with BMG having committed $1.5 billion to catalog acquisitions since 2021.

“We sharpened our focus on music publishing and recorded music, strengthened our digital capabilities, and supported that focus through our Boost investments and cutting-edge technology, including the integration of AI across our workflows,” Coesfeld said. “Our disciplined strategy, robust investment program, and pioneering use of technology enable us to create long-term value for our artists, songwriters, and partners.”