New York-headquartered music rights firm Reservoir Media has reported a 6% YoY enhance in income for the most recent quarter, and has raised its income and EBITDA forecasts for the fiscal yr.
The corporate reported income of $40.7 million for its fiscal Q2 2025, comparable to calendar Q3 2024. That represents a 5% YoY enhance on an natural foundation, or 6% YoY when together with acquisitions.
“From Snoop Dogg to ok.d. lang to Jack Douglas and extra, this quarter represented a interval of notable progress for our roster,” Reservoir Founder and CEO Golnar Khosrowshahi mentioned in an announcement.
“Reservoir has confirmed once more its functionality to draw top-tier expertise who assist outline their varied music style landscapes, common tradition, and past.”
The corporate reported a 10% YoY soar in publishing income to $28.6 million, whereas recorded music income fell 1% YoY to $10.7 million, which the corporate attributed to a spike in gross sales within the year-ago quarter, significantly in bodily gross sales, from the discharge of a number of De La Soul albums.
Digital accounted for the biggest share of publishing revenues, up 22% YoY to $15.6 million. Synch revenues additionally noticed a notable acquire, up 30% YoY to $5.8 million. These beneficial properties had been partly offset by a 22% YoY decline in efficiency revenues, to $5.1 million, whereas mechanical income fell 13% YoY, to $1.1 million.
On the recorded music facet, digital income fell 1% YoY to $7.2 million, whereas bodily fell 21% YoY to $1.5 million – once more, as a result of unfavorable comparability with final yr’s launch of De La Soul albums.
Neighboring rights revenues shot up 35% YoY to $1.1 million, whereas synch revenues rose 3% YoY to $0.9 million.
General, the corporate reported adjusted EBITDA of $17.6 million for the quarter, up 11% YoY, which Reservoir attributed to income progress and improved gross margin.
Working earnings got here in at $10.1 million, up $4.0 million from the identical quarter a yr earlier, whereas OIBDA (working earnings earlier than depreciation and amortization) got here in at $16.6 million, up 34% YoY.
The corporate partly attributed the working earnings and OIBDA beneficial properties to a $2.7 million write-off of recoupable authorized charges in the identical quarter a yr earlier.
Reservoir reported web earnings of $0.2 million for the quarter, which rounds to $0.00 per share, in comparison with $0.7 million, or $0.01 per share, within the year-ago quarter. The decline was primarily as a result of a loss on honest worth of swaps throughout the quarter, in comparison with a acquire on swaps a yr earlier.
Within the wake of the improved earnings numbers, Reservoir upgraded its outlook for the present fiscal yr, and is now issuing steering of $150 million–$153 million in income for the fiscal yr ending March 31, 2025. That might mark a 5% YoY soar in income on the mid-point, and is up from an earlier forecast of $148 million-$152 million.
The corporate additionally upped its adjusted EBITDA steering to $59 million–$62 million, which might be a 9% YoY soar on the mid-point. That’s up from steering of $58 million-$61 million in earlier earnings studies.
“Reservoir has confirmed once more its functionality to draw top-tier expertise who assist outline their varied music style landscapes, common tradition, and past.”
Golnar Khosrowshahi, Reservoir
“Our potential to refine our income steering vary is reflective of our confidence within the portfolio of belongings created by our Reservoir-associated artists, whereas inner efforts to regulate prices and thus develop margins allow our elevated Adjusted EBITDA outlook,” CFO Jim Heindlmeyer mentioned.
“This continuation of strong money flows permits us to opportunistically make the most of our out there debt to establish further productive offers for the foreseeable future. We see a transparent path to attaining our adjusted fiscal yr 2025 monetary steering.”
“We see a transparent path to attaining our adjusted fiscal yr 2025 monetary steering.”
Jim Heindlmeyer, Reservoir
Reservoir struck a variety of offers throughout fiscal Q3, together with a home (US) publishing admin deal with Snoop Dogg, which additionally consists of the publishing catalog of Snoop’s Demise Row Data.
The corporate additionally struck a world publishing deal with Canadian pop-country star ok.d. lang, and acquired the catalog of Elvis Presley songwriter Billy Unusual, which incorporates a variety of Elvis hits.
These offers shall be mirrored in Reservoir’s earnings numbers in coming quarters.Music Enterprise Worldwide
