Reservoir Media Reports 14% Revenue Growth in Fiscal Year 2024

Reservoir Media, Inc. (NASDAQ: RSVR), an independent music company, has reported its financial results for the fourth quarter and full year of fiscal 2024 ended March 31, 2024. The company experienced double-digit annual revenue growth in both segments, surpassing its full-year outlook and acquired publishing and recorded rights of legendary artists and emerging talent across genres.

In fiscal year 2024, Reservoir Media reported revenue of $144.9 million, marking a 14% organic increase year-over-year, or 18% including acquisitions. Within this, music publishing revenue increased by 15% year-over-year, while recorded music revenue saw a significant 22% increase year-over-year. The company also reported an operating income of $24.6 million, representing a 17% increase year-over-year, and an adjusted EBITDA of $55.6 million, up 20% year-over-year.

In the fourth quarter of 2024, Reservoir Media reported a revenue of $39.1 million, reflecting an 8% organic increase year-over-year, or 12% including acquisitions. Music publishing revenue increased by 14% year-over-year, while recorded music revenue increased by 3% year-over-year. The company also reported an operating income of $8.8 million, representing a 2% increase year-over-year, and an adjusted EBITDA of $16.0 million, an increase of 6% year-over-year.

Reservoir Media highlighted several significant milestones during fiscal year 2024, including the acquisition of publishing and recorded rights of numerous legendary artists and emerging talents across various genres. The company also expanded into emerging markets with new investments, including signing deals with chart-topping songwriters and acquiring the catalogs of renowned artists and producers.

Looking ahead, the company expects mid-single digit revenue and adjusted EBITDA growth at the mid-point for the fiscal year 2025. Reservoir Media is focusing on driving organic growth and capitalizing on the changing landscape and projected growth of the music industry.

During fiscal 2024, cash provided by operating activities was $36.2 million, an increase of $5.0 million compared to the same period last year. As of March 31, 2024, Reservoir had cash and cash equivalents of $18.1 million and $114.2 million available for borrowing under its revolving credit facility, amounting to total available liquidity of $132.3 million.

The company's CFO, Jim Heindlmeyer, expressed confidence in Reservoir's ability to deliver record performance in fiscal year 2025, with a projected 4% growth for revenue and 7% growth for adjusted EBITDA at the mid-point of the provided guidance range.

Reservoir is an independent music company based in New York City and is the first female-founded and led publicly traded independent music company in the U.S. It represents over 150,000 copyrights and 36,000 master recordings and frequently holds a top 10 U.S. market share, according to Billboard's publishers quarterly. Reservoir was twice named publisher of the year by Music Business Worldwide's The A&R Awards and won independent publisher of the year at the 2020 and 2022 Music Week Awards. The market has reacted to these announcements by moving the company's shares 5.3% to a price of $8.2. Check out the company's full 8-K submission here.

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