NEW YORK (CelebrityAccess) — Independent music publisher Reservoir Media announced solid revenue growth during the company’s third fiscal quarter of 2023, but still reported a net loss during the period.
According to financial filings from Reservoir, revenue during the quarter increased by 7% year-over-year $29.9 million, bolstered by revenue from music publishing, which was up by 14% to 20.2. million from the same period in 2022.
Reservoir’s other sources of revenue, including the company’s artist management division, saw revenue grow by 260% year-over-year.
Milestones for the music publisher during Q3 include the revelation of plans to bring De La Soul’s entire back catalog to digital streaming services for the first time, expanded talent rosters in India with new publishing signings including MC Altaf, D’Evil, and Stunnah Beatz, and an amended credit agreement.
However, Reservoir still posted a net loss of $4.1 million, or ($0.07) per share after recording a net profit of $1.4 million, or $0.02 per share during Q3 2022.
According to Reservoir, their net loss was driven by the early retirement of debt, losses on the fair value of swaps, higher, interest expense, and a onetime tax expense related to a change in tax rate in the U.K.
“Our third quarter results demonstrate the consistent growth profile of our business model as we delivered another quarter of double-digit top-line growth driven by robust demand in our Music Publishing segment. The additions of catalogs, including Dion and Leroy Clampitt, as well as our recent announcement of bringing De La Soul’s full iconic catalog to digital streaming services, will allow us to continue our momentum as a leader in the music industry and bring our deep roster of talent to more audiences around the world,” said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir.
“Reservoir is strongly positioned to capitalize on the positive consumption and monetization trends in the global music industry, even amid a challenging macro-economic environment. We are excited about the future of music in the U.S. and our efforts in emerging markets with PopArabia to bring new music across borders. As we close out our fiscal year, our focus remains on identifying and executing on value-enhancement opportunities for our current roster while expanding our portfolio to drive top-line expansion,” Khosrowshahi added.
