NEW YORK (CelebrityAccess) — Independent music company Reservoir Media just wrapped its first year as a publicly traded company with strong performance on the financial front.
According to financial filings, Reservoir reported revenue of $107.8 million for the year, up 15% year-over-year, driven by strong performance by the company’s recorded music division, which saw revenue increase by 123% year-over-year.
Music publishing was also a revenue driver for Reservoir Media in 2022 and generated revenue for 2021 of $77.1 million, an increase of 17% compared to $66.1 million in fiscal 2021. Reservoir attributed the division’s results to their synchronization business along with other revenue streams but the company noted that revenue increases across all income types in the final quarter of its FY for 2022.
Reservoir posted net income of $13.1 million, or $0.22 per diluted share, one cent above the prior year period
“We are pleased to report very strong results for our fourth fiscal quarter, bringing a close to what has been a record-breaking year for Reservoir. We delivered on our financial commitments, driven by our strategic investments, and continued to execute on our strategy of building a robust, curated, and diversified portfolio of award-winning songwriters’ and artists’ bodies of work,” said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir. “As we close our first year as a publicly traded company, we are proud to announce that we outperformed relative to our expectations and exceeded our capital deployment growth goals with $224 million deployed across 110 unique transactions. More importantly, we laid the foundation for future growth by significantly expanding and diversifying our roster, and we remain proud of our position within the music industry as a trusted partner that can drive value for our talented artists.”
“Going forward, our focus remains on growth, driven by continued execution against our M&A pipeline, as well as through our industry leading value enhancement initiatives. Our pipeline of potential deals remains robust, and we expect to deploy over $100 million in new capital in fiscal 2023 that will help us broaden and further diversify our portfolio. We expect to continue to deliver consistent and predictable results in fiscal 2023, supported by a resilient and cash-generative business model. We look forward to leveraging our growing brand and position in the music industry and believe we have a strong platform and strategy to drive long-term growth,” added Khosrowshahi.
Reservoir, which went public in 2022 through a controversial SPAC merger, closed numerous big ticket deals this year, including the acquisition of Tommy Boy Records, an administration deal with Joni Mitchell, and secured the recorded music rights for Alabama’s catalog.
The company also signed multiple publishing and futures deals over the last few months including Ali Tamposi, Killer Mike, Phil Manzanera, Mohamed Ramadan and others.
