BMG Reports 8.1% Organic Growth, Confirms Q3
BMG's organic revenue grew 8.1% year-on-year in the first half of 2026, with its planned merger with Concord now expected to close in the third quarter.
BMG's revenue grew 4.9% year-on-year to €444 million (USD $518 million) in the first half of 2026, according to interim figures published by the company and its parent Bertelsmann on August 28. On an organic basis, which excludes acquisitions, disposals, and currency effects, revenue increased by 8.1%.
Operating EBITDA adjusted rose to €127 million ($148 million) for the six months ending June, up from €122 million in the first half of 2025. This resulted in an EBITDA margin of 28.7%, which the company said was level with the prior-year period.
BMG stated its underlying recorded music streaming subscription revenue grew by high single digits year-on-year. Bertelsmann's interim report attributed the positive revenue development in both music publishing and recorded music to organic growth. The parent company added that BMG recorded a moderate earnings increase, supported by a focus on higher-margin digital business models.
Financial Performance and Strategy
CEO Thomas Coesfeld said the results reflect the strength of the business built over recent years. He credited the BMG Next initiative for creating a more focused, profitable, and digital-first operation. Coesfeld also highlighted the company's investment in artificial intelligence, which he said is now being applied at scale to connect music with audiences and improve productivity.
BMG completed 14 catalog acquisitions in the period, which it called the highest first-half investment in music rights in its history. Bertelsmann said these deals included rights packages from Jelly Roll, Jet, and Snap! co-founder Luca Anzilotti. BMG also acquired the remaining interests in the Hal David, John Lee Hooker, and ARC Music catalogs from Fuji Music Group.
Bertelsmann stated BMG has invested approximately €1.6 billion in music rights catalogs since 2021 under its Boost program, a figure BMG puts at $1.8 billion. New recorded music signings and renewals included Jamiroquai, Carly Pearce, Tash Sultana, Yung Gravy, and Ocean Sleeper. Publishing deals were signed with Frank Ocean, A$AP Rocky, Gary Barlow, Kamille, Tricky Stewart, Kybba, and MCR-T.
The Concord Merger and Geographic Revenue
Bertelsmann confirmed the planned combination of BMG and Concord, announced in April, is still expected to close in the third quarter of 2026. The transaction has received approval from relevant competition authorities in the United States and Germany. Bertelsmann had previously anticipated a fourth-quarter closing.
Coesfeld said the merger will provide greater scale and increased capacity to invest in artists and songwriters. The combined company will be owned approximately 67% by Bertelsmann and approximately 33% by affiliates of Great Mountain Partners. Concord's shareholders, managed by GMP, will hold that stake and receive a one-time cash payment of $1.16 billion. Bertelsmann arranged a €1 billion acquisition-related credit line with five banks in April to cover the purchase price.
Geographically, just under 50% of BMG's H1 2026 revenue came from the United States, down from just over 51% a year earlier. The United Kingdom contributed 11.3% of the total, up from 10.9%. Germany accounted for 7.7% of revenue. Other European countries generated 19.6%, France contributed 4.5%, and the rest of the world 7.2%.
| Region | H1 2026 Revenue Share | H1 2025 Revenue Share |
|---|---|---|
| United States | Just under 50% | Just over 51% |
| United Kingdom | 11.3% | 10.9% |
| Germany | 7.7% | N/A |
| Other Europe | 19.6% | N/A |
| France | 4.5% | N/A |
| Rest of World | 7.2% | N/A |
Operational Highlights and Market Context
Bertelsmann noted the global music market recorded significant growth in both publishing and recordings during the half. In recorded music, BMG highlighted Louis Tomlinson reaching No. 1 on album charts in the UK, Belgium, and the Netherlands. Marteria topped the German album charts. Jason Aldean earned his 31st No. 1 hit, and Evanescence debuted at No. 1 on the Billboard Hot Hard Rock Songs chart.
In publishing, Bruno Mars notched his tenth No. 1 hit and debuted at the top of the Billboard 200. Jelly Roll topped the Country Airplay chart. BMG also renewed and expanded streaming agreements, entered a direct US licensing deal with Pandora, introduced the AI-powered BMG Motion Art solution for Apple Music, and rolled out its integrated BMG SYNC+ brand.
Across the wider Bertelsmann Group, revenues rose 2.3% year-on-year to €9.3 billion in H1 2026, with operating EBITDA adjusted up 4.9% to €1,311 million. Chairman and CEO Thomas Rabe said the Concord merger and the acquisition of Sky Deutschland would increase Bertelsmann's full-year consolidated revenues to around €22 billion and its EBITDA, including planned synergies, to €3.8 billion. In the full year 2025, BMG generated revenues of €900 million ($1.02 billion) with an EBITDA margin of 31.5%.
