Kobalt revenues jumped 22% to top $600m in 12 months to end of June 2022

Kobalt had a second straight year of profitability in fiscal year 2022 (the 12 months to the end of June last year).

The company, which since last year has been majority-owned by US-based Francisco Partners, says its total revenue has exceeded 600 million USD in the up period 22% annually.

Kobalt says its net sales increased 50% annuallybecause it spent more 300 million USD in content costs (advance and catalog purchases) for 12 months.

In previous years, Kobalt – with headquarters in the UK – has posted its annual financial results on the UK Companies House, providing a comprehensive view of the company’s performance and profitability.

This year, the (now US-owned) company didn’t disclose that level of detail, but the numbers are equally impressive.

Below, you can view Kobalt’s financial results for the previous two financial years, as of the end of June each year.

Discussing Kobalt’s fiscal 2022 results, Laurent Hubert, CEO of Kobalt, said: “This has been another record year for both Kobalt and AMRA on revenue and profit. Our team, who support some of the best musicians in the world, continue to drive our success.

“We are seeing increasing benefits from focusing on publishing and AMRA. I continue to be optimistic about our value to customers and believe we are the best destination for musicians today.”

“I continue to be optimistic about our value to our customers and believe we are the best destination for musicians today.”

Laurent Hubert

Willard Ahdritz, Founder and President of Kobalt said: “We have had another strong year at Kobalt. Driven by both our excellent client list, new contracts and favorable market growth.

“We have doubled down on our core publishing business and AMRA, our global digital society, to continue to innovate for the benefit of creators and rights holders.

“After launching AMRA in 2015, it is starting to take a big step forward in global digital collections and I can’t wait to see its positive impact on our customers and whole industry. And now, Kobalt is even stronger with our new partner Francisco Partners. Someone stop us!”

After selling GREAT and Kobalt Neighbor Rights to Music Sony for $430 million in 2021 (and the sale of its managed portfolios), Kobalt consists of two companies: its core music publishing company, plus AMRA, the company-owned digital collection association company for musicians and publishers.

Kobalt said that in fiscal year 2022, AMRA processed 41.1 billion record-breaking music royalty transactions compared with 29.3 billion in the previous year, a 40% increase year-on-year.

Kobalt says that since its founding in 2015, AMRA has collected nearly $500 million in digital royalties on behalf of musicians and rights holders.

Kobalt says AMRA’s global rollout has “reached every corner of the world outside of the US,” and includes live digital collections for China, Brazil, Japan and, more recently, Canada. .

Meanwhile, Kobalt’s music publishing company grew revenue 20% year-over-year in fiscal 2022, the company said.

Kobalt writers enjoyed co-writing Fiscal Year 2022 hits from Jack Harlow (Rogét Chahayed), Beyonce (Adam Pigott, Freddie Ross), Sam Fender (Sam Fender), Lost Frequencies with Calum Scott (Joacim Persson), , Sebastian Arman, Dag Daniel Osmund Lundberg), Justin Bieber (Andrew Watt, Skrillex, Finneas), Billie Eilish (Finneas), Adelie (Max Martin) and more.

Kobalt’s list of publishing clients includes Andrew Watt, FINNEAS, Ozuna, Karol G, Phoebe Bridgers, Stevie Nicks, Justin Quiles, The Foo Fighters, Roddy Ricch, Gunna, Max Martin, Kali Uchis, etc.

Francisco Partners acquired a controlling stake in Kobalt in the third quarter of 2022 for about 750 million USDaccording to a source who spoke to MBW.

MBW understands that FP’s controlling stake in Kobalt equates to about 90% of the music company.

Meanwhile, two other new co-investors both own minority stakes in Kobalt: Matt Pincus’ MUSIC, plus Dundee Partners.

Also, understand that Kobalt founder, Willard Ahdritz, continues to own a minority stake in the company.

Kobalt’s now defunct investment management arm, Kobalt Capital, has facilitated the sale of two music ownership funds over the past two years for a total of 1.4 billion USD:

Today, Kobalt continues to purchase music rights, but does so through the main company’s balance sheet, using its own financing.Global Music Business