Reservoir Media Reports 19% Revenue Growth and Net Income Turnaround in Q3 2024

Reservoir Media, Inc. reported a significant increase in financial performance for the three and nine months ended December 31, 2024, compared to the same periods in the previous year. The company generated revenues of $42.3 million for the third quarter, marking a 19% increase from $35.5 million in the prior year. For the nine-month period, revenues rose to $117.3 million, an 11% increase from $105.7 million. The net income attributable to Reservoir Media, Inc. was $5.2 million for the third quarter, a turnaround from a net loss of $2.9 million in the same quarter last year. For the nine months, net income was $5.0 million, compared to a loss of $2.0 million in the previous year.

The increase in revenue was driven by a 16% rise in Music Publishing revenue and a 20% increase in Recorded Music revenue. Digital revenue, which accounted for a significant portion of total revenue, increased by 21% to $16.7 million in the third quarter, attributed to price increases at streaming services and catalog acquisitions. The company also reported a notable increase in Other revenue, which rose by 48% due to growth in its artist management business.

Operationally, Reservoir Media continued to expand its catalog through acquisitions, spending approximately $70.2 million on music catalogs in the nine months ended December 31, 2024, compared to $46.8 million in the same period last year. The company’s total assets increased to $832.4 million as of December 31, 2024, up from $783.5 million at the end of the previous fiscal year. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, Reservoir Media expressed optimism about its growth trajectory, citing the ongoing demand for digital music and the strategic acquisitions of music catalogs as key drivers of future revenue. The company is also focused on improving its operational efficiencies and enhancing its market position in the competitive music industry landscape. Despite the positive financial results, the company acknowledged the need to address material weaknesses in its internal controls over financial reporting, which it is actively working to remediate.