Acquisitive music firm Reservoir Media has recorded a 19% bounce in income in its newest quarterly report, attributing the robust outcomes to increased subscription charges at streaming companies, restoration of underpaid royalties, and its ongoing catalog acquisitions.
The New York-headquartered firm reported $42.3 million in income for its fiscal Q3 2025, which corresponds to calendar This autumn 2024 (ended December 31).
That’s a rise of 16% YoY on an natural foundation or 19% YoY when together with catalog acquisitions.
Working revenue got here in at $9.6 million, a rise of $3 million from the identical quarter a yr earlier. Web revenue was $5.3 million, amounting to earnings per share (EPS) of $0.08. That compares to a internet lack of $2.9 million ($0.05 per share) a yr earlier.
Reservoir’s adjusted EBITDA for the quarter amounted to $17.3 million, up 26% YoY, whereas OIBDA got here in at $16.3 million, additionally up 26% YoY.
“Our third fiscal quarter marks one other robust interval of development throughout each the highest and backside traces of our enterprise,” Reservoir Founder and CEO Golnar Khosrowshahi stated.
“With our group’s experience and robust relationships throughout the trade, Reservoir persistently ushers in accretive alternatives that additional form our catalog and roster of expertise into a various and invaluable portfolio.”
The corporate has continued its run of catalog acquisitions, which over the previous yr included works owned by Lastrada Leisure, a catalog of 5,600 compositions from the Nineteen Sixties onward.
It contains hits resembling Captain & Tenille’s Love Will Preserve Us Collectively and the Whispers’ And The Beat Goes On. It additionally contains songs carried out by the likes of Neil Sedaka, Dolly Parton, Eminem, Infamous B.I.G., and Leon Bridges.
“Reservoir persistently ushers in accretive alternatives that additional form our catalog and roster of expertise into a various and invaluable portfolio.”
Golnar Khosrowshahi, Reservoir Media
Reservoir additionally acquired the catalog of Lebohang Morake, maybe greatest often called the composer of Circle of Life from Disney’s The Lion King.
The corporate additionally acquired the producer royalties of Grammy winner Jack Douglas, which incorporates hits by Aerosmith and Low-cost Trick, and the catalog of songwriter/guitarist Billy Unusual, identified for his work with Elvis Presley.
“We proceed to maximise the impression these offers have on our enterprise with our prudent price administration and value-additive practices, and we stay up for sharing our continued M&A momentum by way of the top of our fiscal yr and past,” Khosrowshahi stated.
Music publishing continues to be Reservoir’s largest income, coming in at $26.9 million in calendar This autumn 2024, up 16% YoY. Digital accounted for the lion’s share of that, at $16.7 million, up 20% YoY.
Reservoir attributed the expansion to “worth will increase at a number of music streaming companies,” in addition to catalog acquisitions. It famous that mechanical income jumped 143% YoY to $0.9 million, due to energy in bodily music gross sales.
On the recorded music facet, Reservoir introduced in $12.0 million in income, up 20% YoY, with digital revenues leaping 24% YoY to $8.1 million. Synch rights income jumped 23% YoY to $1.0 million whereas neighboring rights fell 7% YoY to $0.9 million.
Reservoir stated the expansion in recorded income was due to “a royalty restoration associated to underreported utilization for a music catalog,” in addition to development in streaming subscribers and streaming subscription costs. The corporate didn’t disclose which of its catalogs had seen underreported royalties.
For the second quarter in a row, Reservoir elevated its steerage for the total fiscal yr.
It now expects revenues of $155 million–$158 million for fiscal 2025, which ends on March 31, 2025. That may be up 8% YoY on the mid-point. The corporate sees adjusted EBITDA at $61.5 million–$64.5 million, which might be a 13% YoY bounce on the mid-point.
“Our year-to-date efficiency provides us the arrogance to lift our steerage ranges as we go into our remaining quarter of the fiscal yr,” Chief Monetary Officer Jim Heindlmeyer stated.
“Our third fiscal quarter demonstrates the resiliency of our money flows and the energy of our roster, with year-over-year development exhibited throughout lots of our key monetary metrics in comparison with the prior yr.”Music Enterprise Worldwide
