Reservoir Media Revenue Up 34% in 2022, Acquisition Activity Continues – Billboard

Reservoir Media’s revenue increased 34.4% to $107.8 million in the fiscal year ended March 31, 2021, the company announced on Tuesday (June 21). Adjusted earnings before interest, taxes, depreciation and amortization improved 29.5% to $41.3 million.

Music publishing revenue increased 16.1% to $77.1 million. The biggest gain came from synchronization royalties, which improved 41.9% to $13.2 million. Digital royalties increased 7.5% to $37.4 million. Performance royalties decreased 4.3% to $15.6 million.

Recorded music revenue increased 125.2% to $29.5 million, driven primarily by Reservoir Media’s acquisition of Tommy Boy Music in June 2021. Most recorded music revenue came from a 152.1% increase in digital royalties to $18.4 million. Physical sales increased 64.1% to $6.4 million. Sync royalties nearly quintupled to $2.6 million.

“We exceeded our initial expectations for the year, both financially and strategically,” said the CEO Golnar Khosrowshahi in Tuesday’s earnings call. “This included organic growth of 15% in fiscal year 2022, which was complemented by the deployment of over $224 million in capital above the original target of $200 million. Tank Media completed “more than 110 separate transactions” in fiscal 2022, including 87 catalog acquisitions, according to Khosrowshahi. The company plans to deploy $100 million this fiscal year.

Reservoir Media’s guidance for the fiscal year ending March 31, 2023 is for revenue growth of 10% to $116-121 million and adjusted EBITDA growth of 10% to $44-47 million.

Noting the growing clouds of economic uncertainty, Khosrowshahi has repeatedly pointed out that Reservoir’s business model is based on predictable cash flow from music assets that are widely seen as recession-proof. “The opportunities for monetization remain vast,” she said. “Streaming services are not showing signs of saturation in more mature markets and new global markets are catching up fast. The value one gets for a subscription service of $9.99 per month is quite amazing.

Reservoir Media shares rose 4.6% to $6.86 on Tuesday. The Nasdaq composite gained 2.5%. Universal Music Group rose 0.7% while Warner Music Group rose 1.2%.

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