Reservoir has $3bn value of offers in ‘pipeline’ and expects to spend $200m+ on M&A throughout first 12 months as public agency

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This week, New York-based Reservoir Media has printed the monetary outcomes for its fiscal Q3 2022 (calendar This autumn 2021), ended December 31, 2021.

Reservoir, which floated on the NASDAQ through a merger with a SPAC (particular function acquisition firm) in July 2021, noticed its complete income within the three months ended December 31 enhance by 26% to $27.1 million, in comparison with $21.6 million within the prior 12 months quarter.

Reservoir’s Music Publishing income in calendar This autumn was $18.4 million, a rise of 4% year-over-year.

The agency pins this progress on the efficiency of its Sync and Different income streams, which elevated 79% and 502%, respectively.

Nevertheless, that progress was partially offset by a decline in Digital income which Reservoir says may be primarily attributed to a one-time settlement that was acquired within the prior 12 months quarter.

Excluding the affect of that one-time settlement, Reservoir says that its Music Publishing income grew by 22.3%.

Digging deeper into the agency’s publishing revenues reveals that its Digital revenues reached $8.5 million within the three months ended December 31, 2021, which decreased 27% in comparison with the $11.7 million it generated within the prior 12 months quarter.

In the meantime, the agency’s sync income grew 79% from $1.4 million in calendar This autumn 2020 to $2.4 million in calendar This autumn 2021.

Efficiency income grew 6% from $3.8 million in calendar This autumn 2020 to $4 million calendar This autumn 2021 (see beneath).



Reservoir’s Recorded Music income in its fiscal Q3 2022 grew 147% to $8.1 million, in comparison with $3.3 million within the prior 12 months quarter (see beneath).

Reservoir experiences that this enchancment was primarily pushed by robust Digital income progress of 217%, in addition to 1220% progress in Synchronization revenues, which the agency says got here largely on account of  “the restoration within the movie and tv trade from the impacts of the COVID-19 pandemic and the acquisition of Tommy Boy“.

Reservoir acquired acquired Tommy Boy for $100 million in June 2021

The agency’s Digital revenues from recorded music hit $4.9 million in calendar This autumn 2021, up from $1.5 million within the prior 12 months quarter, whereas Bodily income grew 9% from $1.2 million in calendar This autumn 2020 to $1.3 million calendar This autumn 2021.



Elsewhere, Reservoir experiences that its working revenue in fiscal Q3 2022 was $4 million, a lower of 19%, in comparison with working revenue of $4.9 million within the prior 12 months quarter.

Reservoir pins this lower in working revenue on an increase of $1.3 million “for share-based compensation and roughly $1 million in prices related to being a public firm”.

In the meantime, OIBDA (working revenue earlier than depreciation and amortization) elevated 11% to $9 million, in comparison with $8.1 million within the prior 12 months quarter.

Adjusted EBITDA was $10.2 million, in comparison with $8.1 million within the prior 12 months quarter (see beneath).



Alongside Reservoir’s newest earnings launch, Founder and Chief Government Officer Golnar Khosrowshahi said that the agency expects “to deploy over $200 million in strategic M&A throughout our first 12 months as a public firm”.

Since Reservoir efficiently floated on the NASDAQ in July 2021, the agency has acquired:

  • A raft of songs from nation songwriter Stephony Smith for an undisclosed price (in November).
  • Hit songs by Platinum-selling songwriter and producer Dallas Austin (November).
  • A stake within the publishing catalog of Fred Parris, the author, lead vocalist and founding father of doo-wop group The 5 Satins (December).
  • The publishing catalog of Grammy-winning DJ, songwriter, and producer Fred Rister (in January 2022).
  • The publishing and recorded music catalogs of nation star Travis Tritt (January 2022).

Moreover, Khosrowshahi revealed that the agency has “$3 billion value of offers within the pipeline”.

Commenting additional on this multi-billion greenback sum throughout the agency’s earnings name, Khosrowshahi famous that, “We’ve a $3 billion pipeline of potential offers that we’re actively exploring”.

She added: “We’re proud to be delivering on our guarantees and are much more proud that these extremely gifted artists and creators have entrusted us to be the stewards of their life’s work.

“We additionally consider that our M&Successful reveals the ability of relationship pushed focusing on, which helps us establish off radar offers will convey long-term worth to the group.”

“As we glance ahead, our pipeline stays strong and the money producing energy of our enterprise will proceed to gas these excessive progress, excessive working leverage alternatives.

“We’re executing on our technique via a gentle cadence of acquisitions, coupled with an intense concentrate on execution.

“Our robust third fiscal quarter monetary efficiency demonstrates how we’re capitalizing on the expansion within the music trade.”

Golnar Khosrowshahi, Reservoir

In a media assertion, Golnar Khosrowshahi, mentioned: “Our robust third fiscal quarter monetary efficiency demonstrates how we’re capitalizing on the expansion within the music trade and producing vital worth by executing on our technique of constructing a sturdy, curated, and diversified portfolio of award-winning songwriters’ and artists’ our bodies of labor.

“As a part of this, we anticipate to deploy over $200 million in strategic M&A throughout our first 12 months as a public firm.

“We’re proud to ship on our guarantees to deploy capital towards accretive offers that may convey long-term worth to our group and our shareholders.

“We’re honored that these extremely gifted artists and creators entrusted us to be stewards of their life’s work. We’ve $3 billion value of offers within the pipeline, and the money producing nature of this enterprise will proceed to gas these excessive progress, excessive working leverage alternatives as we transfer ahead.”

“Our staff utilized worth enhancing alternatives for our creators whereas our portfolio of property continues to develop via our acquisition technique.”

Jim Heindlmeyer, Reservoir

Jim Heindlmeyer, Chief Monetary Officer of Reservoir, added: “We continued to execute towards our technique which drove double-digit progress on each a top- and bottom-line foundation within the third fiscal quarter.

“Our staff utilized worth enhancing alternatives for our creators whereas our portfolio of property continues to develop via our acquisition technique.

“We raised our fiscal 12 months steering to raised replicate our robust natural monetary efficiency and momentum with acquisitions over the previous three quarters.”

Music Enterprise Worldwide

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