Good news for Germany's entertainment giant this week. Recent cost cutting has helped secure BMG parent company Bertelsmann a four times increase in profits. In the first half of this year profits rose to Euros 446 million, up from Euros 100 million in the same period the previous year.
Although Bertelsmann's TV and publishing divisions played a particular role in boosting profits, improved performance at BMG also contributed. The music division returned to an operating profit of E74 million, compared with a loss of E135 million a year earlier. That success was due to a combination of downsizing, general recovery in the music sector and the success of key artists like Avril Lavigne, Usher and Outkast. It remains to be seen if the merger of BMG with Sony further boosts Bertelsmann's profits in the next set of figures.
Commenting on the profits rise Bertelsmann chief executive Gunter Thielen told reporters: "Our recent consolidation efforts are paying off and we are back on a growth track."
Elsewhere in Bertelsmann news, and the media conglom have denied rumours they are in talks with the BBC about acquiring their commercial division BBC Worldwide, although the Financial Times says the German entertainment firm are one of three the BBC is talking to regarding the future of Worldwide.