Q3 2026 Reservoir Media Inc Earnings Call Transcript
Key Points
- Reservoir Media Inc (RSVR) reported a 5% year-over-year organic growth, highlighting strong demand for its music catalog.
- Music publishing revenue increased by 12%, and recorded music revenue grew by 8%, driven by acquisitions and digital revenue growth.
- The company secured 10 Grammy wins across multiple genres, showcasing the strength and recognition of its artist roster.
- Reservoir Media Inc (RSVR) expanded its portfolio by acquiring rights from iconic artists like Bertie Higgins, Gladys Knight, and TI.
- The company is actively investing in emerging markets, with favorable acquisition multiples and streaming growth rates outpacing the US and Europe.
- Net income for the third fiscal quarter decreased to $2.2 million from $5.3 million in the prior year, primarily due to a loss on fair value of swaps and increased interest expenses.
- Earnings per share dropped to $0.03 from $0.08 in the year-ago quarter.
- Total costs increased by 8% compared to the prior year's quarter, driven by higher administration expenses, cost of revenue, and amortization and depreciation expenses.
- Interest expense rose to $6.6 million, an increase of $800,000 from the prior year, due to increased borrowings for M&A activities.
- The company faces uncertainty around CRB processes, which could impact future royalty rates and revenue.
Good morning, everyone and thank you for participating in today's earnings conference call. Reservoir Media issued a press release with results for its third quarter of fiscal year 2026 ended December 31, 2025, earlier this morning. If you did not receive a copy of our earnings press release, you may access it from the investor relations section of our website at investors.reservoir-media.com.
With me on today's call are Golnar Khosrowshahi, Founder and Chief Executive Officer, and Jim Heindlmeyer, Chief Financial Officer.
As a reminder, this call is being simultaneously webcast and will be recorded and archived on the investor relations section of our website. (Event Instructions)
I would now like to turn the call over to Gulnar.
Thank you, Jackie. Good morning, everyone and thank you for joining us today. We continue to execute our strategy in the third fiscal quarter with a sustained
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