Reservoir Media has pulled in $49.9 million in quarterly sales, a 10% jump that has led the New York music firm to raise its yearly targets. Without the boost from deals to buy music rights, growth came in at 4%.
Both main parts of the business had a good run. Music publishing grew 8%, while recorded music saw an 18% rise. Day-to-day operating profit also climbed 15% to $12.3 million.
Other profit measures moved up as well. OIBDA reached $20.7 million, up 14%, while adjusted EBITDA gained 14% to $22.1 million.
Publishing still brings in most of the cash. That unit made $33.2 million, with digital income up 10% to $17.6 million. More streams and newly bought song catalogs helped drive that gain.
Music used in films, shows, and ads brought in $5.2 million, up 13%. Performance rights rose 1% to $7.5 million, while mechanical income slipped 5% to $1.6 million.
Elsewhere in publishing, other income grew 24% to $1.3 million. The unit's OIBDA came to $12.4 million, a 9% gain, with its margin holding at 37%.
Recorded music had a faster pace of growth. Sales hit $15.4 million, with digital income surging 33% to $11.5 million. Catalog deals and more streaming played a big role here as well.
Neighboring rights had a strong showing at $1.5 million, up 40%, helped by new rights deals and links with partners. Physical sales rose 6% to $1.4 million.
But sync income on the recorded side took a hit, falling 54% to $0.9 million. Reservoir linked that drop to when licensing deals came through, rather than a wider shift in demand.
Even with that dip, the unit earned $8.3 million in OIBDA, up 26%. Its margin rose from 51% to 54%, as direct costs took a smaller share of sales.
The firm has kept buying music rights as well. It picked up José Feliciano's recorded catalog, which features the artist behind Feliz Navidad, and added jazz composer Billy Strayhorn's publishing works.
Reservoir's ties with Strayhorn's estate go back to 2014. Both catalog deals came after the close of the financial period.
And fresh talent is part of the plan. Jake Sinclair signed a publishing deal for future songs and set up a joint venture with Reservoir to find and develop new writers.
Other names on its new roster include Fred Ball, Orla Gartland, The Snuts, Justin Dukes, Ava Liv Mabry, Riley Biederer, and The Reklaws.
CEO Golnar Khosrowshahi sees the mix of classic catalogs and newer acts as key to the firm's growth. The aim is to add more music rights while keeping a broad range of artists and songs.
For its full fiscal year, Reservoir expects $188 million to $192 million in sales, up from its old forecast of $186 million to $191 million. The midpoint points to 8% growth.
Its adjusted EBITDA target has also risen to $77 million to $80 million, against the old $75 million to $79 million range. That puts expected growth at about 7% rather than 5%.
CFO Jim Heindlmeyer says the stronger results and careful cost control give the firm more room to lift those forecasts.
Across the first half of its fiscal year, Reservoir made $91.4 million, up 11%. Adjusted EBITDA reached $37.8 million, up from $33.3 million before.
The balance sheet shows $113.9 million in funds it can access, while net debt stands at $433.8 million, up from $429.8 million.
Both main parts of the business had a good run. Music publishing grew 8%, while recorded music saw an 18% rise. Day-to-day operating profit also climbed 15% to $12.3 million.
Other profit measures moved up as well. OIBDA reached $20.7 million, up 14%, while adjusted EBITDA gained 14% to $22.1 million.
Publishing still brings in most of the cash. That unit made $33.2 million, with digital income up 10% to $17.6 million. More streams and newly bought song catalogs helped drive that gain.
Music used in films, shows, and ads brought in $5.2 million, up 13%. Performance rights rose 1% to $7.5 million, while mechanical income slipped 5% to $1.6 million.
Elsewhere in publishing, other income grew 24% to $1.3 million. The unit's OIBDA came to $12.4 million, a 9% gain, with its margin holding at 37%.
Recorded music had a faster pace of growth. Sales hit $15.4 million, with digital income surging 33% to $11.5 million. Catalog deals and more streaming played a big role here as well.
Neighboring rights had a strong showing at $1.5 million, up 40%, helped by new rights deals and links with partners. Physical sales rose 6% to $1.4 million.
But sync income on the recorded side took a hit, falling 54% to $0.9 million. Reservoir linked that drop to when licensing deals came through, rather than a wider shift in demand.
Even with that dip, the unit earned $8.3 million in OIBDA, up 26%. Its margin rose from 51% to 54%, as direct costs took a smaller share of sales.
The firm has kept buying music rights as well. It picked up José Feliciano's recorded catalog, which features the artist behind Feliz Navidad, and added jazz composer Billy Strayhorn's publishing works.
Reservoir's ties with Strayhorn's estate go back to 2014. Both catalog deals came after the close of the financial period.
And fresh talent is part of the plan. Jake Sinclair signed a publishing deal for future songs and set up a joint venture with Reservoir to find and develop new writers.
Other names on its new roster include Fred Ball, Orla Gartland, The Snuts, Justin Dukes, Ava Liv Mabry, Riley Biederer, and The Reklaws.
CEO Golnar Khosrowshahi sees the mix of classic catalogs and newer acts as key to the firm's growth. The aim is to add more music rights while keeping a broad range of artists and songs.
For its full fiscal year, Reservoir expects $188 million to $192 million in sales, up from its old forecast of $186 million to $191 million. The midpoint points to 8% growth.
Its adjusted EBITDA target has also risen to $77 million to $80 million, against the old $75 million to $79 million range. That puts expected growth at about 7% rather than 5%.
CFO Jim Heindlmeyer says the stronger results and careful cost control give the firm more room to lift those forecasts.
Across the first half of its fiscal year, Reservoir made $91.4 million, up 11%. Adjusted EBITDA reached $37.8 million, up from $33.3 million before.
The balance sheet shows $113.9 million in funds it can access, while net debt stands at $433.8 million, up from $429.8 million.
