The combined successes of the 2017 song of the summer, Despacito, the sales of the TV series American Gods and the popularity of controversial book-turned-Netflix series 13 Reasons Why has helped drive record first-half profits at German media group – Bertelsmann.
According to Guardian, Bertelsmann said profits exceeded €500 million (£460m) for the first time, from revenues up slightly to €8.1 billion.
The report:
- Profits at Penguin Random House – the world’s largest book publisher, owned in conjunction with Pearson – surged from €185 million to €206 million from revenues of just over €1.5 billion in the first half.
- The biggest seller in the first half was 13 Reasons Why. Other hits included Into the Water, the second thriller from The Girl on the Train author, Paula Hawkins, which sold 600,000 copies in just two months.
- Bertlesmann’s music business, BMG, also enjoyed a strong first half, with profits rising from €32 million to €40 million year-on-year and revenues surging 28% to €233 million.
- BMG said there had been strong performances in the UK, where it signed Kylie Minogue, and the US, which included deals with Avril Lavigne and Black Eyed Peas singer Fergie. The business benefited from the chart success of clients including Nickelback, DJ Khaled and the runaway global hit Despacito.
- Revenues at Bertelsmann’s TV arm, RTL, Europe’s biggest ad-funded broadcaster and owner of X Factor co-producer Fremantle Media, grew from €2.87 billion to €2.97 billion. The company credited the rise in part to the success of American Gods, the TV adaptation of Neil Gaiman’s novel, which aired on Starz in the US and Amazon’s Prime Video service internationally.
- However, RTL profits fell from €676 million to €624 million in what it said was a challenging environment for the TV industry. The company said it would benefit from the revival of American Idol. The talent show is to return to US screens after being cancelled two years ago after a 15-season run.
