{"id":222781,"date":"2025-02-05T16:08:54","date_gmt":"2025-02-05T16:08:54","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=222781"},"modified":"2025-02-05T16:11:53","modified_gmt":"2025-02-05T16:11:53","slug":"reservoir-raises-full-year-guidance-again-as-revenue-jumps-19-to-42-3m-in-calendar-q4","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/reservoir-raises-full-year-guidance-again-as-revenue-jumps-19-to-42-3m-in-calendar-q4\/","title":{"rendered":"Reservoir raises full-year guidance again as revenue jumps 19% to $42.3m in calendar Q4"},"content":{"rendered":"

Acquisitive music company Reservoir Media has recorded a 19% jump in revenue in its latest quarterly report, attributing the strong results to higher subscription fees at streaming services, recovery of underpaid royalties, and its ongoing catalog acquisitions.<\/p>\n

The New York-headquartered company reported $42.3 million<\/strong> in revenue for its fiscal Q3 2025, which corresponds to calendar Q4 2024 (ended December 31).<\/p>\n

That\u2019s an increase of 16% YoY<\/strong><\/span> on an organic basis or 19% YoY<\/strong><\/span> when including catalog acquisitions.<\/p>\n

<\/div>
<\/div>
<\/div> <\/div> <\/span><\/p>\n

Operating income came in at $9.6 million<\/strong>, an increase of $3 million from the same quarter a year earlier. Net income was $5.3 million<\/strong>, amounting to earnings per share (EPS) of $0.08<\/strong>. That compares to a net loss of $2.9 million ($0.05 per share) a year earlier.<\/p>\n

Reservoir\u2019s adjusted EBITDA for the quarter amounted to $17.3 million<\/strong>, up 26% YoY<\/strong><\/span>, while OIBDA came in at $16.3 million<\/strong>, also up 26% YoY<\/strong>.<\/p>\n

\n
<\/a>
Source: Reservoir<\/figcaption><\/figure>\n
\n

“Our third fiscal quarter marks another strong period of growth across both the top and bottom lines of our business,\u201d Reservoir Founder and CEO Golnar Khosrowshahi<\/strong> said.<\/p>\n

\u201cWith our team’s expertise and strong relationships across the industry, Reservoir consistently ushers in accretive opportunities that further shape our catalog and roster of talent into a diverse and valuable portfolio.”<\/p>\n

<\/div> <\/div> <\/span><\/p>\n

The company has continued its run of catalog acquisitions, which over the past year included works owned by Lastrada Entertainment<\/strong><\/a>, a catalog of 5,600<\/strong> compositions from the 1960s onward.<\/p>\n

It includes hits such as Captain & Tenille<\/strong>\u2019s Love Will Keep Us Together<\/em> and the Whispers<\/strong>\u2019 And The Beat Goes On<\/em>. It also includes songs performed by the likes of Neil Sedaka<\/strong>, Dolly Parton<\/strong>, Eminem<\/strong>, Notorious B.I.G.<\/strong>, and Leon Bridges<\/strong>.<\/p>\n

“Reservoir consistently ushers in accretive opportunities that further shape our catalog and roster of talent into a diverse and valuable portfolio.”<\/p>\n

Golnar Khosrowshahi, Reservoir Media<\/span><\/p><\/blockquote>\n

Reservoir also acquired<\/a> the catalog of Lebohang Morake<\/strong>, perhaps best known as the composer of Circle of Life<\/em> from Disney\u2019s The Lion King<\/em>.<\/p>\n

The company also acquired<\/a> the producer royalties of Grammy winner Jack Douglas<\/strong>, which includes hits by Aerosmith<\/strong> and Cheap Trick<\/strong>, and the catalog<\/a> of songwriter\/guitarist Billy Strange<\/strong>, known for his work with Elvis Presley<\/strong>.<\/p>\n

<\/div> <\/div> <\/span><\/p>\n

“We continue to maximize the impact these deals have on our business with our prudent cost management and value-additive practices, and we look forward to sharing our continued M&A momentum through the end of our fiscal year and beyond,” Khosrowshahi said.<\/p>\n

Music publishing<\/strong> continues to be Reservoir\u2019s largest source of revenue, coming in at $26.9 million<\/strong> in calendar Q4 2024, up 16% YoY<\/strong><\/span>. Digital accounted for the lion\u2019s share of that, at $16.7 million<\/strong>, up 20% YoY<\/strong><\/span>.<\/p>\n

Reservoir attributed the growth to \u201cprice increases at multiple music streaming services,\u201d as well as catalog acquisitions. It noted that mechanical revenue jumped 143% YoY<\/strong><\/span> to $0.9 million<\/strong>, thanks to strength in physical music sales.<\/p>\n

\n
<\/a>
Source: Reservoir<\/figcaption><\/figure>\n
\n

On the recorded music<\/strong> side, Reservoir brought in $12.0 million<\/strong> in revenue, up 20% YoY<\/strong><\/span>, with digital revenues jumping 24% YoY<\/strong><\/span> to $8.1 million<\/strong>. Synch rights revenue jumped 23% YoY<\/strong> to $1.0 million<\/strong>\u00a0while neighboring rights fell 7% YoY<\/strong><\/span> to $0.9 million<\/strong>.<\/p>\n

Reservoir said the growth in recorded revenue was thanks to \u201ca royalty recovery related to underreported usage for a music catalog,\u201d as well as growth in streaming subscribers and streaming subscription prices. The company didn\u2019t disclose which of its catalogs had seen underreported royalties.<\/p>\n

\n
<\/figure>\n
\n

For the second quarter in a row, Reservoir increased its guidance<\/strong> for the full fiscal year.<\/p>\n

It now expects revenues of $155 million<\/strong>–$158 million<\/strong> for fiscal 2025, which ends on March 31, 2025. That would be up 8% YoY<\/strong><\/span> at the mid-point. The company sees adjusted EBITDA at $61.5 million<\/strong>–$64.5 million<\/strong>, which would be a 13% YoY<\/strong><\/span> jump at the mid-point.<\/p>\n

\u201cOur year-to-date performance gives us the confidence to raise our guidance ranges as we go into our final quarter of the fiscal year,” Chief Financial Officer Jim Heindlmeyer<\/strong> said.<\/p>\n

“Our third fiscal quarter demonstrates the resiliency of our cash flows and the strength of our roster, with year-over-year growth exhibited across many of our key financial metrics compared to the prior year.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Price hikes and subscriber growth at streaming services sent Reservoir’s revenue up by double digits in the company’s fiscal Q3<\/p>\n","protected":false},"author":46,"featured_media":207782,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[130682,2463,131002,1111],"class_list":["post-222781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-earnings","tag-golnar-khosrowshahi","tag-jim-heindlmeyer","tag-reservoir-media"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/222781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=222781"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/222781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/207782"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=222781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=222781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=222781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}