Despacito drives Bertelsmann to €500m profits

The global success of 2017’s song of the summer, Despacito, together with 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, the Guardian reports.

The privately owned Bertelsmann said profits exceeded €500m (£460m) for the first time, from revenues up slightly to €8.1bn. Profits at Penguin Random House– the world’s largest book publisher, owned in conjunction with Pearson – surged from €185m to €206m from revenues of just over €1.5bn 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.

Bertelsmann is increasing its stake in Penguin from 47% to 75% in a $1bn (£780m) deal with Pearson announced in July. Bertlesmann’s music business, BMG, also enjoyed a strong first half, with profits rising from €32m to €40m year-on-year and revenues surging 28% to €233m.