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Reservoir Media Inc (RSVR) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...

In This Article:

  • Revenue: $40.7 million, up 6% year-over-year.

  • Adjusted EBITDA: $17.6 million, up 11% year-over-year.

  • OIBDA: $16.6 million, up 34% year-over-year.

  • Net Income: Approximately $200,000, down from $700,000 in the prior year.

  • Earnings Per Share: Breakeven, compared to $0.01 in the prior year.

  • Music Publishing Revenue: $28.6 million, up 10% year-over-year.

  • Recorded Music Revenue: $10.7 million, down 1% year-over-year.

  • Interest Expense: $5 million, decreased by $800,000 year-over-year.

  • Cash Provided by Operating Activities: $21.9 million, up $3 million year-over-year.

  • Total Liquidity: $142.3 million, including $21.1 million cash on hand.

  • Total Debt: $324.5 million, net of $4.4 million deferred financing costs.

  • Guidance Range for Revenue: Increased to $150 million to $153 million.

  • Guidance Range for Adjusted EBITDA: Increased to $59 million to $62 million.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Reservoir Media Inc (NASDAQ:RSVR) reported a 6% increase in revenue to $40.7 million and an 11% rise in adjusted EBITDA to $17.6 million compared to the previous year.

  • The company achieved significant milestones by signing deals with high-profile artists such as Snoop Dogg and k.d. lang, enhancing its reputation and portfolio.

  • Reservoir Media Inc (NASDAQ:RSVR) successfully acquired the producer rights of Jack Douglas and the publishing rights to Billy Strange's catalog, diversifying its portfolio.

  • The company reported strong organic growth driven by investments in country music songwriters and producers, contributing to its overall success.

  • Reservoir Media Inc (NASDAQ:RSVR) raised its revenue guidance range to $150 million to $153 million and adjusted EBITDA guidance to $59 million to $62 million, indicating confidence in future performance.

Negative Points

  • Recorded music revenue declined by 1% due to the previous year's release of De La Soul's catalog, impacting overall revenue growth.

  • Net income decreased to approximately $200,000 from $700,000 in the previous year, partly due to a loss on the fair value of swaps.

  • The company experienced a decrease in mechanical and performance revenue due to the timing of chart-topping releases and broadcasts.

  • Digital revenue in the recorded music segment was down slightly, affected by a spike in streaming following the death of Sinead O'Connor.

  • The Synch revenue, while strong, is subject to timing fluctuations and is not necessarily indicative of a consistent run rate.