GVL yields EUR 310m in 2017 – Earnings exceed record breaking year 2016

21. June 2018. 

2017 financial results: GVL yields EURO 310m in collections for neighbouring rights on behalf of artists, producers and event organisers

  • Revenue growth of more than 14.1% compared to previous record year 2016
  • Private copying levy on devices for mobile phones and tablets also a strong driver of revenue in 2017
  • Other revenue categories also slightly up
  • Distribution plans for 2016-2018 finalised and passed
  • Modernising process of the GVL continues

You can download this press release here.

Berlin 21. June 2018 – In the course of this year’s Associates’ and Delegates’ Assembly on 20. June 2018, GVL has announced very good financial results for the year 2017. With revenues of EUR 310m this year’s annual result exceeds that of the previous record year 2016. The high revenues are driven for the second consecutive year by additional revenues from the exploitation within the private copying via mobile phones and tablet PCs category, which were collected by the central collection and distribution organisation for private copying levies in Germany [ZPÜ]. GVL does not expect similarly high revenues from this category in coming years. 

Overall GLV generated in 2017 revenues of around EUR 310m from the collections for neighbouring rights on behalf of artists, producers and event organisers. The GVL has thus secured a revenue increase of 14.1% compared to the previous record year 2016. In addition to the private copying revenue segment, revenues from the broadcast remuneration category (Radio, TV and videoclips), public performances, rental and lending as well as cable retransmission also showed small increases during the reporting year 2017. Only the revenues forwarded by sister companies as well as interests earned in 2017 were each down by a good 30%. The decline in interests earned reflects the continuation of low interest rate levels.
 
‘We are pleased alongside our more than 154,000 members, who now also hugely benefit in 2017 from the good outcome of the negotiations from the manufacturer’s levy’, explains Dr. Tilo Gerlach, Managing Director of GVL. Guido Evers, Managing Director of GVL adds: ‘In times of technical and structural change we can yet again look back on another very successful financial year. We will continue on our path of modernisation and customer focus, in order to provide worldwide, modern and future oriented services to our members and partners’.
 
At the Associates’ and Delegates’ Assembly on Wednesday 20. June 2018, the distribution plans for usage years from 2016 were adjusted and released by the committee members. In addition to the grants already agreed, three additional projects were confirmed. In 2018 and 2019 the following additional institutions can now look forward to receiving a grant from GVL:

  • Felix Mendelssohn Bartholdy Hochschulwettbewerb [Felix Mendelssohn Bartholdy University competition]
  • Verband der HörspielRegie e.V. [Radio plays Producer Association, (registered association)]
  • Initiative Musik für 2019 [Initiative ‘Music for 2019’]

In the 2017 financial year, GVL again invested significant amounts in the continuation of its digital transformation. As part of this technical and organisational modernisation process payments earned since 2017 are being processed via a completely bespoke IT infrastructure. In order to meet the global demands of the creative economy, industry and rights users, the GVL will develop its processes and systems on an on-going basis. In the medium term the GVL will thus become one of the most modern and progressive service providers, also regarding the comparison to international collective management organisations.

More details: 2017 financial results

The most important individual positions contributing to the total turnover:

  • The biggest share in income was again made up of income from ‘private reproductions’ and in particular fees from manufactures’ levy for mobile phones and tablet-PCs: in 2017 EUR 169.3m were generated from this segment (2016: EUR 132.7m)
  • With respect to the broadcast remuneration category, EUR 87m were collected (2016: EUR 83.5m)
  • The revenue yielded from public performance grew also slightly to EUR 42.5m (2016: EUR 41.5m)
  • The remuneration from the rental and lending of various sound recordings and videos via libraries remain stable at EUR 2.4m
  • Income from cable retransmission slightly increased during 2017 to EUR 2.2m (2016: EUR 2.1m)
  • Other revenue and interest exhibited a downward trend with EUR 2.7m for 2017 compared to EUR 3.9m in 2016; this is due to the impact of the continuation of the low interest levels. Higher interest income could not be yielded in the given market environment due to the stipulation that GVL has to follow a gilt-edged investment policy.
  • Just like in the previous years, not all of the income posted is available to GVL in order to be paid out to members by means of regular distributions – the outstanding amount to be temporarily blocked due to a lack of receipt of payments totals EUR 42.6m for 2017.

In 2017 GVL distributed grants amounting to EUR 3.1m. GLV's own administration costs amounted to EUR 22.7m and exceeded, at a pro rata share of 7.3%, the previous year’s amount by 28.5%. The reasons for this are project consulting and implementation costs relating to the operative adjustment of processes and systems in accordance with VGG (Collecting Societies Act) provisions. In parallel internal staff related costs including social contributions fell significantly by over EUR 1.2m during the same period.
GVL’s detailed year-end accounts for 2017 will be published by GVL in late summer in the course of its transparency report, and will be available at www.gvl.de.

 

 

About GVL:
Those who render artistic performances or create the respective financial basis for the latter, must receive money for the exploitation of their performances. GVL, the society for the administration of neighbouring rights, captures and manages such exploitations. GVL pays the fees it collects on a fiduciary basis e.g. from radio and TV stations and for the communication to the public (e.g. in restaurants or cafés) to its members in the form of a remuneration each year. More than 154,000 performing artists, producers of sound recordings and audiovisual recordings, music and music video clip producers as well as event organisers have placed their trust in GVL on a global level - and thus make GVL one of the biggest collective management organisations for neighbouring rights in the world. The German Orchestra Association (registered association) [DOV] and the Federal Association of the Music Industry (registered association) [BVMI] are associates of GVL.

Contact:
Gregor Hintz / Kommunikation
Phone: +49 30 48483-877
E-Mail: presse@gvl.de
www.gvl.de