Independent music company Reservoir Media announces the financial results of the fiscal quarter ended on December 31, 2023, with solid publishing and recording gains alongside a narrowing net loss.
Indie music company Reservoir Media has posted the company’s financial results for the third fiscal quarter of 2024, ended on December 31, 2023. Among the company’s highlights include a 14% revenue increase of $35.5 million, with a 15% increase in music publishing revenue and a 32% increased in recorded music revenue year-over-year.
“Our third quarter results highlight the strength of our business model and our ability to deploy capital to further grow our portfolio. We posted double digit revenue growth across both our recorded and publishing segments, notably driven by record-setting digital consumption across genres,” said Golnar Khosrowshahi, Founder and CEO of Reservoir.
“Through the end of the third quarter of this fiscal year, we continued with consistent delivery in line with our long-term growth strategy. Quarter after quarter, we execute on targeted investments that diversify the roster and catalog, we maintain a focus on emerging markets, and we bring value to our stable of creators and their copyrights.”
Music publishing revenue came in at $23.1 million, an increase of 15% compared to last year’s $20.2 million, with growth driven by strong results in digital and sync revenue, partially offset by lower mechanical and other revenue.
Recorded music revenue in the third quarter was $10 million, an increase of 32% compared to $7.6 million the year previous. Likewise, growth was driven by strong revenue in all recorded music revenue types, especially digital.
Operating income in the third quarter was $6.5 million compared with an operating income of $4.6 million in the third quarter a year prior. OIBDA in the third quarter increased 27% to $12.9 million, compared to $10.1 million in the third quarter of 2023.
The increase in operating income was primarily driven by strong revenue and gross margin results in both recorded music and publishing segments, partially offset by higher administration expenses and increased amortization expense compared to the previous year. Similarly, the increase in OIBDA was largely due to strong revenue growth, and partially offset by higher administration expenses.
Net loss attributed to common stockholders in the third fiscal quarter was $2.9 million at $0.05 per share, compared to a net loss of $4.1 million at $0.07 per share in the same quarter a year prior. The decrease in net loss was driven by higher revenue and improved gross margins, partially offset by higher loss on fair value of interest rate swaps, higher admin expenses, amortization expense, and interest expense.