Reservoir Media, a company that acquires music rights, reported its 12th consecutive quarter of annual revenue growth, but the company also recorded a net loss of $500,000.
The New York-based company reported earnings for the first quarter of fiscal 2025 (equivalent to the second quarter of 2024) on Wednesday (July 31).
The company’s revenue is $34.3 millionone 8% annual increase including increases upon acquisition, or 6% annual increase Organic growth.
A 15% annual increase Growth in publishing revenue more than offsets 7% Recorded music revenue falls.
The company reported Annual increase of 58% operating income increased, $5 millionrelative to $3.1 million in the period one year ago. OIBDA comes in $11.3 millionup 23% annual increaseadjusted EBITDA is $12.6 millionup 25%.
Despite this, the company’s net profit still reached -$5 millionReservoir attributed it to a loss in the fair value of interest rate swaps (hence the difference between operating income and net income).
“Our fiscal first quarter results reflect the continuation of our three-year record of strong financial performance since we became a public company,” said the founder and CEO. Gornar Khosrowshahi said in a note to investors.
“We have grown year-over-year revenue every quarter since going public, and we have raised guidance in each fiscal year.”
She added: “The music industry has experienced an unprecedented return to growth, and experts predict this will continue over the next decade… We are well-positioned to capture additional organic growth while continuing to pursue value-add opportunities.”
publishing income
Reservoir’s publishing revenue is $24 millionup 15% annual increaseThe company said this was driven by catalog acquisitions, revenue from existing catalogs and rising prices on multiple music streaming services.
Catalog acquisitions over the past year include producer rights and publishing catalog from 2Pac producer Big D Evans (aka Deon Evans) and Latin music hitmaker publishing deal Rudy Perez (Natalie Cole, Jose Feliciano, Luis Miguel).
Digital revenue makes up the largest portion of Reservoir’s publishing revenue, $14.6 million (up 23% annual increase), then performance rights $5.1 million (up 14%) and synchronized with $2.8 million (down 7%).
Music publishing OIBDA jumps up 19% annual increase arrive $6.8 millionwhile operating income increased significantly Annual increase of 56% arrive $2.2 million.
Recorded music income
Recorded music income is $9.6 million,A 7% annual increase slip from $10.4 million a year ago.
The company attributed the decrease to the release of from soulThe year-ago catalog resulted in a surge in recorded revenue, particularly in the physical category, making year-over-year comparisons in the latest quarter difficult.
Decline in in-kind income Annual growth of 62%arrive $1.4 million relatively $3.6 million a year ago.
“The music industry has experienced an unprecedented return to growth, and experts predict this will continue over the next decade… We are well-positioned to capture additional organic growth while continuing to pursue value-add opportunities.”
Gornar Khosrowshahi Reservoir
Digital revenue surges 17% annual increase arrive $6.6 millionwhile the neighboring rights grow 29% annual increase arrive $1.1 millionsimultaneous revenue surge 87% arrive $600,000.
Recorded music OIBDA improved to 27% annual increase arrive $4.5 millionwhile operating income increased significantly Annual increase of 53%arrive $2.7 million.
“Our revenue growth and cost control efforts in the first quarter have laid a solid foundation for the remainder of the fiscal year,” the chief financial officer said. Jim Heindelmeier said in a statement Wednesday.
“Our healthy cash flow generation and available debt give us the financial flexibility to continue to grow our portfolio and pursue new organic growth opportunities in the coming quarters. We are well positioned to achieve our previously released fiscal 2025 financial results guidance.
The guidance remains unchanged from the previous quarter, calling for revenue of $148 million–$152 million For fiscal year 2025 ending March 31, 2025, there was an increase 4% annual increase at the midpoint.
The company expects full-year EBITDA to be $58 million–$61 million,A 7% annual increase Midpoint increases.
“Our healthy cash flow generation and available debt give us the financial flexibility to continue to grow our portfolio and pursue new organic growth opportunities in the coming quarters.”
Jim Heindelmeyer, Res.
The company’s relatively high debt levels have sometimes been questioned by analysts. $324.1 million (total debt) and $307.8 million (Net debt) against cash and cash equivalents $16.4 million (Slightly lower than the same period last year).
Compared to current market capitalization $540.5 million.
The company reports that it has $121.2 million Can borrow money under its revolving credit facility, with total available liquidity of $137.6 million.
In an investor fact sheet released earlier this year, Reservoir said it had spent nearly US$1 billion Since its launch in 2007, it has been dedicated to catalog sourcing and contracting.
Reservoir shares fell by approx. 1% In premarket trading on Nasdaq on Wednesday, the price was approx. $8.30 per share.global music business
