NEW YORK - Reservoir Media, Inc. (NASDAQ:RSVR), a prominent independent music company, has entered into a publishing agreement with renowned singer-songwriter k.d. lang. The contract encompasses lang's future musical works and a portion of her existing catalog.
The Canadian artist, known for her powerful vocals and a career spanning several decades, has received numerous accolades, including Grammy and Juno awards. Her partnership with Reservoir was publicly announced today, signaling a significant addition to the company's diverse roster of artists.
k.d. lang, whose career took off in the 1980s with the country-swing band The Reclines, has since released multiple solo and collaborative albums, contributing to soundtracks and performing internationally. Her achievements include multiple Grammy and Juno awards, induction into the Canadian Music Hall of Fame, and receiving Canada's highest civilian honor, the Order of Canada.
On joining Reservoir, lang expressed her excitement and confidence in the creative partnership, praising the company's CEO, Golnar Khosrowshahi, for her understanding of artists. Khosrowshahi reciprocated the sentiment, expressing pride in representing lang and anticipating support for the artist's future endeavors.
Reservoir, founded in 2007 and led by Khosrowshahi, has established itself as a significant player in the music industry, managing a vast portfolio of copyrights and master recordings. The company's growth is marked by its consistent Top 10 U.S. Market Share and recognition as Publisher of the Year at various industry awards.
The New York-based company's expansion and partnerships reflect its commitment to fostering artistic talent and reaching new audiences. This latest deal with k.d. lang is poised to enrich Reservoir's offerings and support lang's artistic journey.
This news is based on a press release statement from Reservoir Media, Inc.
In other recent news, Reservoir Media Inc. reported an 8% increase in its Q1 fiscal year 2025 earnings, with total revenue reaching $34.3 million. This growth was led by a 15% surge in the Music Publishing segment, attributed to increased prices at streaming services and a rise in digital and performance-based revenues. However, the company experienced a 7% decrease in Recorded Music revenue, primarily due to a shift in physical revenue. Despite this, Reservoir Media's full-year revenue and adjusted EBITDA guidance remains unchanged at $148 million to $152 million and between $58 million and $61 million respectively.
In other company news, Reservoir Media recently held its Annual Meeting of Stockholders, where three Class III Directors were re-elected and Deloitte & Touche LLP was ratified as the company’s independent registered public accounting firm for the fiscal year ending March 31, 2025. The company continues to generate significant cash from operating activities, with liquidity standing at $137.6 million against a total debt of $324.1 million.
These are recent developments that highlight the company's strategic focus on emerging markets and confidence in the long-term growth potential of the music industry. Reservoir Media's recent fiscal quarter results reflect its adaptability to industry trends and its ability to increase revenue streams, contributing to its positive outlook.
InvestingPro Insights
Reservoir Media's recent publishing agreement with k.d. lang aligns with the company's growth strategy, as reflected in its financial metrics. According to InvestingPro data, Reservoir's revenue growth stands at 13.47% over the last twelve months as of Q1 2023, indicating a positive trend in its business expansion.
The company's market capitalization of $577.25 million suggests it has the financial capacity to pursue significant deals like the one with lang. Moreover, Reservoir's gross profit margin of 62.48% demonstrates its ability to effectively monetize its music catalog and partnerships.
InvestingPro Tips highlight that Reservoir is trading near its 52-week high and has shown a strong return over the last month, with a 12.85% price increase. This recent performance could be indicative of investor confidence in the company's strategic moves, including high-profile artist acquisitions.
It's worth noting that while Reservoir is profitable over the last twelve months, it's trading at a high earnings multiple. This valuation suggests that investors are pricing in future growth expectations, possibly driven by deals such as the k.d. lang agreement.
For readers interested in a deeper dive into Reservoir Media's financial health and prospects, InvestingPro offers 5 additional tips, providing a more comprehensive analysis of the company's position in the competitive music industry landscape.
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