Reservoir Media Reveals Double-Digit Q2 2023 Revenue Increase, $15.6 Million in Catalog Acquisitions

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Reservoir Media (NASDAQ: RSVR) achieved a double-digit revenue boost during 2023’s second quarter, when the company’s digital publishing income spiked by over 40 percent from the same period in 2022, according to a new earnings report.

New York City-headquartered Reservoir Media posted its financials for Q2 2023 (the first quarter of the business’s 2024 fiscal year) today. Per the performance analysis, the company generated $31.84 million between April’s start and June’s end, up 31 percent year over year (YoY) including acquisitions and 21 percent YoY “organically.”

Additionally, the highly active catalog investor identified Q2 2023 operating income of $3.14 million (up 138 percent YoY), adjusted EBITDA of $10.12 million (up 36 percent YoY), and net income of $164,553.

By division, Reservoir attributed the majority of its quarterly revenue to publishing ($20.79 million, up 26 percent YoY), which is said to have turned in $1.40 million in operating income.

Behind the $20.79 million, the publicly traded business attributed $11.90 million to digital sources (up 41 percent YoY), $4.51 million to performance (up 28 percent YoY), $3.03 million to sync (down eight percent YoY), $559,647 to mechanical (up nine percent YoY), and $783,548 to other (up 24 percent YoY).

On the recorded side, the Tommy Boy owner pointed to $10.38 million in revenue (up 37 percent YoY), consisting of $5.62 million from digital (up 23 percent YoY), $3.57 million from physical (up 176 percent YoY), $859,147 from neighboring rights (up 25 percent YoY), and $328,290 from sync (down 68 percent YoY).

By region, operations in the United States produced $19.19 million in quarterly income ($13.00 million from publishing, $6.19 million from recorded and other), according to Reservoir’s disclosures, with the remaining $12.65 million having derived from international ($7.79 million from publishing, $4.86 million from recorded).

Meanwhile, Reservoir said that it had dropped a total of $15.62 million on catalog acquisitions (including deals with Mannie Fresh and The Spinners) throughout Q2 2023.

During their company’s Q2 earnings call, execs touted the perceived revenue benefits of streaming service price increases, discussed the entity’s pipeline of investment deals in the Middle East and elsewhere (about $2 billion), and expressed confidence in Reservoir’s positioning in terms of access to capital.

Lastly, Reservoir had $325.81 million in total debt as of June 30th (with a $4.73 million quarterly interest expense), the report shows, and higher-ups have forecasted $127 million to $132 million in revenue for the entire fiscal year. When the market closed today, RSVR was worth $5.41 – down about 1.3 percent from Tuesday’s close and a little over 16 percent from early August of 2022.

SiriusXM unveiled its Q2 2023 financials this week, whereas Live Nation, Google/Alphabet, Spotify, and others shed light upon their own second-quarter performances towards July’s end.