based in New York reservoir Vehicles generated $29.9 million in revenue in the fourth quarter of 2022 (financial quarter 2023), up 16% from the $25.8 million generated by the company in the fourth quarter of 2021 calendar (Reservoir’s fiscal 2022 third quarter).
This growth, according to new investor filings released on Wednesday (February 8) in the three months to the end of December, was mainly driven by 14% The company’s Music Publishing revenue grew year over year, including acquisitions of various categories.
It was also driven by the company’s ‘Other’ revenue segment, which grew 260% YoY to $2.2 million, driven by strong performance in Reservoir’s artist management business (which manages artists through a joint venture with Blue Raincoat Music and Big Life Management).
On an organic basis (i.e. reduced acquisition price), Reservoir says its total revenue has increased 7% YoY in the calendar Q4.
Commenting on these results, Founder and CEO of Reservoir Golnar Khosrowshahi notes, “Reservoir is well positioned to capitalize on positive consumer and monetization trends in the global music industry, even in a challenging macroeconomic environment”.
Khosrowshahi added: “As we close out the financial year, our focus remains on identifying and implementing opportunities to add value to our existing listings while expanding our portfolio to drive growth. drive revenue expansion.”
Jim Heindlmeyer, Reservoir’s CFO, added that, “based on momentum” in the business, Reseroir made the decision to raise the average of its guidance for both revenue and adjusted EBITDA. for the entire financial year.
He added: “Our business is very stable and we are confident in our ability to deliver on these improved expectations.
Music publishing
Reservoir filings reveal that their Music Publishing revenue for fiscal Q3 2023 (Q4 2022) was $20.2 million, up 14% compared to $17.7 million in Q4 2021 (the third quarter of the company’s previous fiscal year).
Growth was driven by strong results in the company’s Digital, Performance and Synchronization segments, which increased 29%, 28%And 51%corresponding.
Growth in the broader publishing segment was partially offset by a decline in Mechanical and Other revenue.
recorded music
The company’s total recorded music revenue for the fourth quarter of calendar year 2022 is 7.6 million USDincrease of first% year-on-year compared to $7.5 million in Q4 2021.
Reservoir reports that this 1% improvement is largely due to strong Digital and Proximity revenue, which has increased 17% and 43% respectively.
Growth in the Recorded Music segment was partially offset by declines in Physical and Sync revenue.
‘Digital’ contributed 5.3 million USD to Reservoir’s recorded music revenue for Q4 2022, up 17% By year.
Physical revenue drops twelfth% annualfrom 1.3 million USD in the fourth quarter of 2021 calendar year, to 1.1 million USD in the fourth quarter of 2022 calendar year.
In terms of profitability, Reservoir reported that its operating income (see below) for the calendar quarter was $4.6 millionupward 71% YoY compared to its operating income is $2.7 million in the fourth quarter of 2021 (fiscal quarter 2022).
Some recent highlights noted by Reservoir in its profile include plans bring the entire catalog back to De La Soul for digital streaming services for the first time on March 3, 2023.
Recently the company also buy The artist’s published catalog is inducted into the Rock and Roll and Grammy Hall of Fame Dion Francis DiMucci, known professionally as Dion.
“As we close out the fiscal year, our focus remains on identifying and executing opportunities that add value to our existing listings while expanding our portfolio to drive business expansion. collect.”
Golnar Khosrowshahi, Reservoir
Golnar Khosrowshahi, Founder and CEO of Reservoir, said: “Our third quarter results show that our business model is growing steadily as we achieve sales growth. double digits in another quarter thanks to strong demand in our Music Publishing segment.
“The addition of categories, including Dion and Leroy Clampitt, as well as our recent announcement of bringing De La Soul’s iconic full catalog to digital streaming services, will allow us to continue our momentum as a leader in the music industry and bring our extensive lineup of talent to audiences around the world.
Khosrowshahi added: “Reservoir is well-positioned to capitalize on positive monetization and consumption trends in the global music industry, even in a challenging macroeconomic environment.
“We are excited about the future of music in the United States and our efforts in emerging markets with PopArabia to bring new music across borders. As we close out the financial year, our focus remains on identifying and implementing opportunities that add value to our existing listings while expanding our portfolio to drive revenue expansion. .”
Jim Heindlmeyer, CFO of Reservoir, added: “We have achieved peak performance and continue to perform at a high level against our strategic growth plan.
“The inherent operating leverage generated by our business model continued to materialize as adjusted OIBDA and EBITDA margins improved during the quarter.
“Given the momentum in our business, we are raising our average guidance for both revenue and adjusted EBITDA for the full fiscal year. Our business is very agile and we are confident in our ability to live up to these improved expectations.”Global Music Business
