Music rights company Reservoir Media reported substantial revenue growth in the latest quarter and recently ended fiscal year, but expects weaker growth in the year ahead.
The New York-based company reported $144.86 million Revenue for fiscal year 2024 ending March 31, 2024. 14% annual increase grown organically, or 18% annual increase If you include acquisitions throughout the year, there’s a jump in growth.
Reservoir operating income increased significantly 17% annual increasearrive US$24.58 millionwhile Adjusted EBITDA increased 20% annual increase arrive $55.6 million.
Revenue and adjusted EBITDA numbers were both slightly higher than the company’s latest forecast for the fiscal year, released in February.
The company reports diluted earnings per share $0.01down from $0.04 in the previous fiscal year.
“The annual decrease in net income was primarily due to the fair value loss on interest rate swaps, the write-off of recoverable legal fees and attorney’s fees of $2.7 million, and an increase in interest expense, but was partially driven by a decrease in income tax expense and higher operating income,” the company said in a statement to investors stated in the author’s statement.
Reservoir founder and CEO in comments to investors Gornar Khosrowshahi Highlighting the company’s numerous acquisitions over the past year, including a publishing deal with Lebanon’s “Queen of Pop” Nancy Aguilam; reach an agreement Joe Walsh Eagles fame, which includes hits from his solo albums and collaborations with bands including the Eagles and the James Gang; and deals for a catalog of Latin hits Rudy Perezwhich includes songs he wrote or co-wrote for people like christina aguilera and Julio Iglesias.
“The broad reach of our assets, coupled with our value enhancement across platforms, positions us to continue building on our success as a leading independent music company,” Khosrowshahi said.
“We are entering fiscal 2025 with a strong financial foundation and a solid portfolio of assets, with a focus on driving organic growth and capitalizing on the changing landscape and expected growth in the music industry.”
Gornar Khosrowshahi Reservoir
She continued: “We are entering fiscal 2025 with a strong financial foundation and a solid portfolio of assets, with a focus on driving organic growth and capitalizing on the changing landscape and expected growth in the music industry.”
“We will continue to invest in artificial intelligence and machine learning to support a deeper understanding of our data and usage trends to better capture additional revenue and improve marketing and licensing efficiencies across the organization. We will continue to work with our award-winning We collaborate with award-winning creators to bring their work to audiences around the world and look forward to playing an important role in the future of music.
The company issues fiscal 2025 guidance, targets revenue US$148 million to US$152 millionwhich will be a 4% annual increase As the midpoint increases, Adjusted EBITDA is US$58 million-61 millionup 7% at the midpoint.
“Fiscal 2024 is an exceptional year for Reservoir, highlighted by multiple unique opportunities to drive organic revenue generation through our value enhancement efforts,” said Chief Financial Officer Jim Heindelmeier explain.
“We executed several immediately accretive transactions while practicing prudent cost management in an inflationary environment. In fiscal 2025, we expect to deliver another record performance.
Calendar Quarter 1 Results
For its fiscal fourth quarter (calendar first quarter), Reservoir reported revenue of US$39.15 millionone 8% annual increase organically increased, or 12% annual increase Including acquisitions.
Operating income is $8.76 millionup 2% annual increasewhile Adjusted EBITDA increased 6% annual increase arrive $16 million.
The company reports diluted earnings per share $0.04 This quarter was flat compared to the same period last year.
Music publishing revenue is $26.4 million This season, rising 14% annual increase. Among them, digitalization accounts for $13 million (up 11% annual increase), and the performance accounts for $7.5 million (up 73% annual increase).
Publishing revenue growth 1% arrive $4.3 million.
“Revenue growth was primarily driven by higher performance and digital revenue types, partially offset by lower synchronization, mechanical and other revenue,” Reservoir said.
In terms of recorded music, Reservoir reported revenue of $11.2 millionup 3% annual increase. Among them, digitalization accounts for $7.4 million (up 9% annual increase), while in-kind income fell 34% annual increase arrive $1.8 million.
“The growth of both [fiscal Q4 and FY 2024] Reservoir said growth in digital revenue was driven by strong performance as global cross-platform streaming continued to be a tailwind, offset by weaker physical revenue in the fourth quarter.global music business
