Music rights company Reservoir Media reported strong sales growth in its most recent quarter and recently ended fiscal year, but expects more modest growth in the year ahead.
The New York-based company reported. $144.86 million Revenues for fiscal 2024 ended March 31, 2024. this is 14% compared to the previous year grow organically or 18% compared to the previous year It jumps if you include year-round acquisitions.
Reservoir operating profit surges 17% compared to the previous yearto $24.58 millionWhile adjusted EBITDA increased 20% compared to the previous year to $55.6 million.
Both revenue and adjusted EBITDA figures slightly exceeded the company’s most recent forecast for the fiscal year, which it released in February.
The company reported diluted earnings per share. $0.01That’s down from $0.04 in the previous fiscal year.
“The year-over-year decrease in net income was primarily due to a loss in fair value of interest rate swaps, $2.7 million for amortization of recoverable legal costs and attorneys’ fees, partially offset by an increase in interest expense,” the company said in a statement to investors. “It decreased and operating profit improved,” he said.
Reservoir founder and CEO in comments to investors Golnar Khosrowshahi It highlighted the company’s numerous acquisitions over the past year, including a publishing deal with the Lebanese ‘Queen of Pop’. Nancy Azram; transaction joe walsh Eagles fame, which includes hits from his solo catalog and work with bands such as the Eagles and the James Gang; Latin Hitmaker Catalog Deals Rudy PerezThis includes songs he wrote or co-wrote. Christina Aguilera and Julio Iglesias.
“The breadth of our assets, combined with increased value across our platforms, allows us to continue our success as a leading independent music company,” Khosrowshahi said.
“We enter fiscal 2025 with a strong financial foundation and a solid portfolio of assets, focused on driving organic growth and capitalizing on the changing environment and anticipated growth in the music industry.”
Golnar Khosrowshahi, reservoir
She continued, “We enter fiscal 2025 with a solid financial foundation and a solid portfolio of assets, focused on driving organic growth and capitalizing on the changing environment and expected growth in the music industry.”
“We will continue to invest in artificial intelligence and machine learning to support a deeper understanding of data and usage trends to better drive additional revenue and improve marketing and licensing efficiencies across the organization. “We will continue to work with award-winning creators to showcase their work to listeners around the world and look forward to playing an important role in the future of music.”
The company announced its fiscal 2025 revenue targets. $148 million to $152 millionthis is 4% compared to the previous year Increased and adjusted EBITDA at the midpoint. $58 million to $61 millionconsolation 7% At the halfway point.
“Fiscal 2024 was a remarkable year for Reservoir, highlighting several unique opportunities to drive organic revenue generation through value enhancement efforts,” the CFO said. Jim Heindlmeier said.
“We executed several transactions that enabled us to generate immediate returns while exercising prudent cost management despite the inflationary environment. “We expect to deliver record performance again in fiscal 2025.”
Calendar First Quarter Results
For its fiscal fourth quarter (calendar first quarter), Reservoir reported the following revenues: $39.15 million, 8% compared to the previous year grow organically or 12% compared to the previous year Includes arguments.
Operating profit $8.76 millionconsolation 2% compared to the previous yearWhile adjusted EBITDA increased 6% compared to the previous year to $16 million.
The company reported diluted earnings per share. $0.04 On a quarterly basis, there was no change from the same period last year.
Music publishing revenue $26.4 million rise this quarter 14% compared to the previous year. Among them, the proportion of digital $13 million (consolation 11% compared to the previous year) and performance were considered. 7.5 million dollars (consolation 73% compared to the previous year).
Increase in publishing operating profit One% to $4.3 million.
“Revenue growth was primarily driven by higher performance and digital revenue types, partially offset by lower synchronization, mechanical and other revenue types,” Reservoir said.
In the recorded music segment, Reservoir reported the following revenues: $11.2 millionconsolation 3% compared to the previous year. Among them, the proportion of digital $7.4 million (consolation 9% compared to the previous year), although physical revenue decreased 34% compared to the previous year to 1.8 million dollars.
“Both grow [fiscal Q4 and FY 2024] Reservoir delivered strong results within digital revenues as streaming across platforms globally continued to be weak, offsetting weaker physical revenues in the fourth quarter,” Reservoir said.worldwide music business
