Business

Reservoir Media revenues grow 10% YoY to $33.3m in calendar Q3


Headquarters in New York reservoir Media generated $33.3 million in revenue in the calendar third quarter of 2022 (fiscal year 2023), up 10% from the $30.3 million the company generated in the third quarter of 2021. scheduled (Reservoir’s 2nd quarter 2022).

That’s according to new investor filings for the three months to the end of September, published by the publicly traded music company on Tuesday (November 8).

Reservoir says this increase has been mainly driven by strong growth in both its recorded and published music segments, highlighted by 11% growth in the Recorded Music segment, “including the acquisition of various categories”.

On an organic basis (i.e. discounting acquisitions), Reservoir says its overall revenue has increased 6% YoY in the Q3 calendar.

Commenting on these results in a statement released on Tuesday, Golnar KhosrowshahiReservoir’s founder and CEO said “the music industry continues to experience strong winds of secularism, which will allow it to weather any impact from the macroeconomic downturn. “.

Reservoir CFO Jim Heindlmeyer said in a statement that the company will “continue to deliver on our $100 million capital deployment target for strategic M&A this year.”

Founder and CEO Golnar Khosrowshahi revealed in June that Reservoir expects to deploy more than $100 million in new capital by fiscal year 2023.

The acquisitions of the published and recorded music portfolio recently announced by Reservoir include the swing artist portfolio Louis Prima and Lebanese music publisher and label, Voice of Beirut combine with a music publisher and music company based in MENA PopArabia.

Music publishing

A closer look at Reservoir’s records shows that Music Publishing revenue for the calendar quarter was 24.1 million dollarsget a raise 9% YoY vs 22.1 million dollars in the third quarter of 2021.

The key driver behind Reservoir’s Music Publishing business in the third quarter of the calendar year was Digital Revenue, generating 13.2 million dollars in the Q3 calendar, up 15% YoY.



Other highlights in Reservoir’s Publishing business include its sync and operations revenue, generating 4.4 million dollars and 4.4 million dollarsrespectively in the Q3 calendar, increased first% and 6% YoY, respectively.

Recorded music

The company’s total recorded music revenue for the third quarter of the calendar year was $8.9 millionget a raise 11% YoY compared to $8 million in the third quarter of last year.

Reservor says the improvement is “largely driven by properties under the Tommy Boy label”, which it buying in a deal worth about $100 million in June 2021.



Reservoir’s recorded music revenue was also driven by “strong Sync and Digital revenue growth,” the company noted in its investor filing Tuesday, however, adding that This growth was partially offset by lower physical sales.

‘Digital’ contributed 6.3 million dollars Reservoir’s recorded music revenue for Q3 2022, up 35% YoY.

Actual sales have decreased 66%are from 2.5 million dollars in last year’s 3rd quarter calendar, to $900,000 in the calendar Q3 2022.

Commenting on the company’s physical revenue during the company’s earnings press conference on Tuesday, Jim Heindlmeyer, Reservoir’s Chief Financial Officer, said: “Our physical revenue is dependent on the release schedule. ours”.

He added: “We had a strong release schedule last year, compared to a softer release schedule this year. We’re expecting a Record Store Day in the third quarter of this year, and we expect physical sales to pick up as we move through the rest of the year. “

In terms of profitability, Reservoir reported that its operating income (see below) for the calendar third quarter was 6.6 million dollarsdown 15% YoY vs. operating income of 7.8 million dollars in the second quarter of fiscal year 2022 (according to the third quarter of 2021 calendar).


OIBDA (operating income before depreciation and amortization) in the calendar quarter fell 5% arrive 12 million dollarscompare to 12.5 million dollars in the previous quarter.

Adjusted EBITDA for the third quarter of the calendar year (Reservoir’s fiscal year 2023 second quarter) increased first% YoY coming 12.8 million dollars, fight with 12.7 million dollars in the third quarter of 2021.

“Our second-quarter financial results are testament to the strength and consistency of our business model, and we have released guidance for the year to reflect our momentum. .”

Golnar Khosrowshahi, Reservoir

Golnar Khosrowshahi, Founder and CEO of Reservoir, said: “Our second fiscal quarter financial results are testament to the strength and consistency of our business model, and We’ve put together guidelines for the year to reflect our motivations.

“We have delivered double-digit revenue growth and signed many well-known creators to our roster and talent portfolio across both our Recording and Publishing segments. .

Khosrowshahi added: “The music industry continues to experience strong secular headwinds, which will allow it to weather any impact from the macroeconomic downturn.

“We are seeing a vibrant resurgence in live performances, more opportunities to sync, and an increase in subscribers to streaming content services.

“Our value-enhancing initiatives, combined with our diverse portfolio of award-winning musicians and artists, strategically position Reservoir to continue to benefit from its growth momentum. industry, while working to create significant long-term value for our list and shareholders.

“Our strategy continues to support strong, consistent financial performance, and we expect to execute on positive business growth opportunities that will further boost our listing, drive drive our scale and create value for our shareholders.”

“We will also continue to implement our goal of deploying $100 million in capital for our strategic M&A target for the year.”

Jim Heindlmeyer, Reservoir

Jim Heindlmeyer, Reservoir’s Chief Financial Officer, said: “We are pleased with our financial results and the implementation of our strategic initiatives in the second fiscal quarter.

“Due to our strong operating results and projected future growth, we are increasing both revenue and adjusting our EBITDA guidance for the full fiscal year.

“We will also continue to deliver on our $100 million capital deployment target for strategic M&A for the year, and will remain disciplined as we assess future positive business growth opportunities.”Worldwide music business

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