Reservoir Media reports record revenue, eyes mergers & acquisitions for growth.

From Investing.com: 2024-06-02 20:32:00

Reservoir Media (RSVR) reported robust financial performance for Q4 and full fiscal year 2024, achieving record-setting total revenue and operating income. Fiscal year revenue increased by 18%, driven by growth in music publishing and recorded music segments. The company provided a positive outlook for fiscal 2025, projecting revenue between $148 million and $152 million and adjusted EBITDA between $58 million and $61 million.

Key financial highlights include a 12% increase in Q4 revenue to $39.1 million, full fiscal year revenue growth to $144.9 million, and net income at $800,000. Reservoir Media ended the year with $330.8 million in total debt and $132.3 million in total liquidity. De La Soul’s catalog release significantly contributed to fiscal year revenue. Fiscal 2025 revenue is projected between $148 million and $152 million.

Although operating expenses and administration expenses rose by 16% and 28% respectively from the prior year, Reservoir Media’s investments in AI and expansion in emerging markets are expected to drive cost savings and revenue generation. The company remains prepared to pursue M&A opportunities with a high ROI, even amidst higher interest rates. Reservoir Media sees organic growth at 4% for fiscal year 2025, with considerations for industry challenges like Spotify’s bundling changes.

Investors can access additional insights and analysis from InvestingPro to understand Reservoir Media’s growth trajectory, market capitalization, and P/E ratio. The company’s positive outlook for fiscal 2025 reflects its strong financial position and commitment to creator success. Reservoir Media is primed for continued growth and financial stability, with a focus on strategic acquisitions, investments in AI, and revenue diversification.



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