Photo Credit: Reservoir Media
Independent publisher Reservoir Media posts a sizable quarterly net income drop in its second fiscal quarter, while promising more IP acquisitions ahead.
Indie music publisher Reservoir Media announced the results of its second fiscal quarter that ended on September 30. The company reported a generated revenue of $38.4 million during the quarter, up 10% from the same period last year, with 15% including acquisitions.
Music publishing played a major role in Reservoir’s revenue in Q2, contributing $25.9 million and an overall 8% year-over-year growth. Meanwhile, revenue from Reservoir’s recorded music division increased to $10.8 million — a 22% year-over-year increase.
Operating income fell to $6.1 million, while net income came to $0.7 million as opposed to its $4.5 million in 2023’s second quarter; $0.01 per share versus $0.07 per share.
“We are pleased with our results in the second quarter as we delivered double-digit revenue and profitability growth while investing in our business by closing numerous deals that diversified and expanded our roster of artists,” said Golnar Khosrowshahi, CEO and founder of Reservoir Media. “We advanced our strategy of adding award-winning songwriters and prominent catalogs to our portfolio to capitalize on the continued strong secular tailwinds in the music industry.”
Reservoir closed many high-profile deals with clients during the quarter, including Latin music legend Rudy Perez and Joe Walsh of the Eagles’ fame. The company also further expanded its international footprint, acquiring RE Media and El Sawareekh in a deal with PopArabia.
“Reservoir remains well positioned to benefit from the growth of the music industry, and we are confident in our ability to effectively deploy capital given our strong market position in both the US and emerging markets,” continues Khosrowshahi.
“We are encouraged by the growing opportunities internationally and welcome recent additions of El Sawareekh and RE Media expanding our presence in the emerging markets. We will continue to pursue acquisitions in the US and across the globe, and we have the right team and strategy to close accretive deals enhancing the portfolio and building long-term value for the business and our shareholders.”