"We're going to look at India," says Bertelsmann CEO Thomas Rabe on where BMG may expand to next.
German media conglomerate Bertelsmann announced its financial results for 2016 on Tuesday, touting bumps in operating earnings and sustained growth in publishing and recorded music.
Last year, overall revenues remained virtually unchanged at 17 billion euros ($18.4 billion) despite negative exchange rate (previous year: 17.1 billion euros), and operating EBITDA rose to a record 2.57 billion euros ($2.8 billion), up from 2.49 billion euros, even though start-up losses were incurred for digital and new businesses. Despite a higher tax burden, group profit once again exceeded the previous year's figure, rising to 1.14 billion euros (previous year: 1.11 billion euros).
Bertelsmann chairman and CEO Thomas Rabe said revenues for BMG rose by 12.2 percent to 416 million euros ($451 million), up from 371 million euros. This development was driven by the publishing business in the United Kingdom, Australia and continental Europe; a strong recorded music business in continental Europe, the United States and the U.K.; and the worldwide increase in revenue from streaming services. Operating EBITDA rose by 13.1 percent to 95 million euros ($103 million), up from 84 million euros, thanks to the development in the U.K. and the U.S. The EBITDA margin increased to 22.8 percent (previous year: 22.6 percent).