On July 31, 2024, Reservoir Media Inc (RSVR, Financial) released its 8-K filing for the first quarter of fiscal 2025, ending June 30, 2024. Reservoir Media Inc is an independent music company with segments including Music Publishing and Recorded Music, generating most of its revenue from the Music Publishing segment.
Performance Overview
Reservoir Media Inc reported total revenue of $34.3 million for Q1 FY25, an 8% increase from $31.8 million in Q1 FY24. This growth was primarily driven by a 15% increase in Music Publishing revenue, which offset a 7% decline in Recorded Music revenue. The company's operating income rose significantly by 58% to $5.0 million, compared to $3.1 million in the same quarter last year.
Key Financial Metrics
| Summary Financials | Q1 FY25 | Q1 FY24 | Change |
|---|---|---|---|
| Total Revenue | $34.3M | $31.8M | 8% |
| Music Publishing Revenue | $24.0M | $20.8M | 15% |
| Recorded Music Revenue | $9.6M | $10.4M | (7%) |
| Operating Income | $5.0M | $3.1M | 58% |
| OIBDA | $11.3M | $9.2M | 23% |
| Net (Loss) Income | ($0.5M) | $0.2M | NM |
| Adjusted EBITDA | $12.6M | $10.1M | 25% |
Segment Performance
Music Publishing revenue increased by 15% to $24.0 million, driven by acquisitions and higher prices at multiple music streaming services. Digital revenue saw a 23% rise, while Performance and Mechanical revenues grew by 14% and 20%, respectively. However, Synchronization revenue decreased by 7%.
Recorded Music revenue declined by 7% to $9.6 million, primarily due to a decrease in Physical revenue following the release of De La Soul’s catalog in the prior year. Despite this, Digital revenue grew by 17%, and Synchronization revenue surged by 87%.
Balance Sheet and Liquidity
As of June 30, 2024, Reservoir Media Inc had cash and cash equivalents of $16.4 million and $121.2 million available under its revolving credit facility, totaling $137.6 million in liquidity. Total debt stood at $324.1 million, with net debt at $307.8 million.
Management Commentary
“Our results in the first fiscal quarter reflect a continuation of our proven track record of financial outperformance in the three years since we became a publicly traded company. We have had year-over-year revenue growth every quarter since our listing, and we have raised guidance over the course of each fiscal year,” said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media.
Outlook
Reservoir Media Inc maintains its financial outlook for fiscal year 2025, expecting revenue between $148 million and $152 million, and Adjusted EBITDA between $58 million and $61 million. Chief Financial Officer Jim Heindlmeyer stated, “Our top-line growth and cost containment efforts in the first quarter provide a strong foundation for the remainder of the fiscal year. Our healthy cashflow generation and available debt give us the financial flexibility to continue adding to our portfolio and to pursue new organic growth opportunities in the coming quarters.”
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Reservoir Media Inc for further details.
