Q4 2024 Reservoir Media Inc Earnings Call Transcript
Key Points
- Reservoir Media Inc (RSVR) posted an 18% increase in revenue for the fiscal year, with 15% and 22% growth in music publishing and recorded music segments, respectively.
- The company added several award-winning artists and songwriters to its catalog, contributing to 10 Grammy Awards across six genres and 42 number ones on Billboard's charts.
- Reservoir Media Inc (RSVR) successfully utilized AI to increase revenue by tracking and identifying more uses of its copyrights across digital platforms.
- The company finished the year with a strong fourth quarter, showing healthy organic revenue growth of 8% or 12% including acquisitions.
- Reservoir Media Inc (RSVR) has a robust pipeline with over $1 billion in consideration and is in a solid financial position to continue executing transactions with high ROI.
- Net income for fiscal 2024 decreased to $800,000 from $2.8 million last year, primarily due to losses on the fair value of interest rate swaps and increased interest expense.
- The company's administration expenses for fiscal 2024 increased by 28% from the prior year, partly due to a write-off of recoupable legal expenses and inflationary cost increases.
- Interest expense for the full fiscal year increased by 43% compared to the previous year, largely due to a higher debt balance and increased SOFR.
- Synchronization revenue in the publishing segment decreased by 14% in the fourth quarter, primarily due to writer and actor strikes causing production delays in the television and film industries.
- The company's guidance for fiscal year 2025 reflects a more conservative outlook, with expected revenue growth of only 4%, partly due to the impact of Spotify's recent accounting changes.
Good morning, everyone, and thank you for participating in today's conference call to discuss Reservoir Media's financial results for the fourth quarter and fiscal year 2024 ended March 31, 2024. (Operator Instructions) I would now like to turn the call over to Ms. Jackie Marcus with the Alpha IR Group, who will review our agenda today and the company's forward-looking statements. Jackie?
Thank you, operator. Good morning, everyone, and thank you for participating in today's earnings conference call. Reservoir Media issued a press release with results for its fourth quarter and fiscal year 2024 ended March 31, 2024, earlier this morning. If you did not receive a copy of our earnings press release, you may access it from the Investor Relations section of our website at investors.reservoir-media.com.
With me on today's call are Golnar Khosrowshahi, Founder and Chief Executive Officer; and Jim Heindlmeyer, Chief Financial Officer. As a reminder, this call is being simultaneously webcast and will be recorded and archived
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