Bertelsmann, the parent company of one half half of the Sony BMG joint venture, reported its financial results for the first nine months of its fiscal year. Both revenues and profits were down. Revenue dropped 2% to €13.27 billion while profits dropped 65% to €132 billion. Profits sank so sharply because fiscal 2007 includes a large special expense related to the company's Napster settlement. (The company settled with Warner Music Group and EMI this year, and with Universal Music Group last year). Operating EBIT was actually up almost 5% to €1.03 billion. Bertelsmann sold its BMG music publishing division to Universal last year.

From Bertelsmann's 2006 earnings report: BMG posted revenues of € 2.0 billion (down 5.2% from € 2.1 billion in 2005) and operating earnings (before interest and taxes) of € 173 million (down 2.3% from € 177 million in 2005). The company said the music division's lower 2006 performance "is attributed solely to the recorded music business." But there was (slight) good news as BMG "was able to raise the revenue contribution from digital formats from seven to twelve percent."