German record label and publisher BMG had its biggest year in its 25-year history, the company reported Thursday (March 30), saying 2022 revenues were up more than 30% on strong publishing and recorded music growth and the half a billion invested in music catalogs and artists signings.

BMG reported that it generated 866 million euros ($912.6 million) in 2022 compared to 663 million euros in 2021 ($784 million). The company’s publishing division, which makes up 60% of BMG’s revenues, grew by 26% to 518 million euros ($546 million) on new hits by Bebe Rexha and Lewis Capaldi and iconic works by Blondie and Nirvana.

BMG’s recorded music business, which contributes 40% of the company’s overall revenues, grew by 38% to 348 million euros ($367 million) on collaborations from Jason Aldean and Carrie Underwood and the continued streaming strength of Rick Astley‘s “Never Gonna Give You Up.”

With as much as 7 billion euros in backing from its parent company Bertelsmann and $1 billion joint investment partnership with private equity firm KKR, BMG launched an “investment offensive” in 2022, in the words of Bertelsmann. BMG spent more than 509 million euros ($536 million) signing publishing deals with artists like Elvis Costello and Halsey and acquiring 45 catalogs including rights to works by Peter Frampton, John Lee Hooker, Primal Scream and Simple Minds. In August, BMG announced it acquired the German indie label Telamo, expanding its footprint in the world’s fourth largest music market.

BMG executives said the company is on target to achieve its financial goal of generating one billion euros in revenue starting in 2024.

BMG chief executive Hartwig Masuch attributes the record-setting year for revenues to the company’s investments in technology and services to set it apart with artists and focus on “known quantities” of successful music.

“Our strategic differentiation is focusing on the repertoire that grabs more and more share from consumers, which is established repertoire, known quantities,” Masuch tells Billboard. “And in attracting artists, the focus on qualitative differentiation when it comes to accounting, servicing, our daily role, (is) a strategic differentiation between our major competitors and BMG.”

Masuch, who has led BMG since its launch in 2008, will retire at the end of this year, leaving the top job to his current chief financial officer, Thomas Coesfeld.

Coesfeld, who has played a key role in BMG’s catalog acquisition strategy, said the company’s investments last year will “bear fruit in the years to come.”

“Why we are focused on iconic artists is because we are firm believers in the cultural relevance — the earnings permanence,” Coesfeld says. “These returns are stable, less volatile and growing because the streaming environment is still growing a lot — less than in the last two years, but still growing. Our strategy is keep going because we are firm believers that this is the right thing to do.”