Reservoir spent $224 million on deals following IPO

Reservoir spent $224 million on deals following IPO

Reservoir has reported financial results for its fiscal year ending March 31, 2022.

The results are the first for the independent as a publicly listed company. It shows thar Reservoir paid out $224 million across 110 deals during its first year following the IPO.

High-profile deals included the Tommy Boy record label acquisition, a Joni Mitchell administration deal, the recorded music rights to supergroup Alabama, and an expanded Middle East and North Africa footprint with the signing of Egyptian rapper Mohamed Ramadan and Moroccan rapper 7liwa.

Revenue of $107.8 million represented a 34% year-on-year increase, the bulk of that down to a series of acquisitions for the company. Organic growth was also in double digits at 15%.

Reservoir’s publishing business, which triumphed in the Independent Publisher category at the Music Week Awards, increased revenue by 17% year-on-year.

The growing recorded music division increased revenue by 126% year-on-year.

Reservoir reported net income of $13.1m. Adjusted EBITDA of $41.3m was up 29% year-on-year

“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," said Golnar Khosrowshahi, founder and CEO of 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.

“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.”

The company is forecasting 10% growth for both revenue an adjusted EBITDA in fiscal 2023.

Khosrowshahi added: “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.”



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