New York-headquartered Reservoir Media has this week confirmed its newest fiscal outcomes, revealing that its complete revenues within the 12 months to finish of March 2021 stood at $81.1 million – up 28% year-on-year.
In calendar Q2 (the three months to finish of June), Reservoir generated $16.7 million, up 23% year-on-year.
In that very same quarter – the agency’s fiscal Q1 – it generated $12.3 million from music publishing, up 8% year-on-year, and an additional $4.2 million from recorded music.
That recorded music income haul was up 94% year-on-year, which Reservoir mentioned was “largely resulting from robust bodily gross sales on the Chrysalis catalog, the continued development of streaming providers and the acquisition of Tommy Boy Music”.
Reservoir introduced it had acquired Tommy Boy for round $100 million in June.
Immediately’s story displays a brand new degree of transparency round Reservoir’s fiscal outcomes that has arrived because of the agency floating on the NASDAQ through a merger with a SPAC (particular objective acquisition firm) in July.
MBW has, naturally sufficient, had just a little dig round Reservoir’s calendar Q2 outcomes to see if anything attention-grabbing springs out – and it does.
For one factor (see above), Reservoir breaks down exactly the place each its music publishing and recorded music revenues got here from in calendar Q2 2021.
The largest driver of the agency’s quarterly publishing income within the interval was ‘Digital’ on $6.65 million, adopted by Efficiency revenues at $2.66 million.
The largest driver of recorded music revenues was Digital, with $2.8 million, adopted by bodily gross sales, which contributed $969,000 within the quarter.
“Our recurring income mannequin and rising model put us in a powerful place to capitalize on the highly effective secular tailwinds we’re seeing throughout the music enterprise and across the globe.”
Golnar Khosrowshahi, Reservoir
When it comes to Reservoir’s mixed revenues ($16.7m), simply over half ($8.66m) have been generated inside the US, with the rest from international locations exterior the USA.
Profitability-wise, Reservoir posted a $282,000 working revenue in calendar Q2, and a $4.36 million OIBDA (working revenue earlier than depreciation and amortization).
Reservoir additional confirmed: “Adjusting for the affect of the one-time $617.0 thousand good thing about the forgiveness of the Firm’s mortgage below the Paycheck Safety Program through the first quarter 2021, OIBDA elevated by 6% even with the extra prices… related to getting ready to be a public firm.”
One final attention-grabbing tidbit: Reservoir has additionally damaged down its prices in calendar Q2 (fiscal Q1) for traders.
These prices included $6.02 million in “author royalties and different publishing prices” – a determine that rose 15% year-on-year.
Author royalties and different publishing prices as a proportion of Reservoir’s music publishing revenues in calendar Q2 elevated to 49%, up from 46% for the equal interval of 2020.
Reservoir mentioned its lower in margin right here was “because of the change within the mixture of earnings by sort and songwriting shoppers with their particular contractual royalty charges being utilized to the revenues”.
Artist royalties and different recorded music prices rose 154% year-on-year to $1.67 million, partly because of the acquisition of Tommy Boy.
Artist royalties and different recorded music prices as a proportion of recorded music revenues elevated to 40% in calendar Q2 2021, up from 30% for the three months ended June 30, 2020.
“This was partly pushed by the upper prices as a proportion of income on the elevated bodily income for the three months… in addition to greater prices for distributed product”, mentioned Reservoir.
Commenting on the calendar Q2 / fiscal Q1 outcomes, Golnar Khosrowshahi, founder and Chief Govt Officer of Reservoir, mentioned: “Our monetary and operational accomplishments through the first [fiscal] quarter 2022 have been indicative of the spectacular crew and momentum now we have constructed at Reservoir.
“These accomplishments included a number of acquisitions that elevated the power of our catalog, in addition to the growth of our roster of songwriter and producer expertise with a number of new signings over the previous few months.
“We’re the primary U.S.-based publicly traded impartial music firm, and our recurring income mannequin and rising model put us in a powerful place to capitalize on the highly effective secular tailwinds we’re seeing throughout the music enterprise and across the globe.”Music Enterprise Worldwide
