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Reservoir Media Inc. has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing details financial results for the quarter, reporting total revenues of $42.3 million, an increase from $35.5 million in the same period the previous year. This growth was driven by a 16% increase in Music Publishing revenue and a 20% increase in Recorded Music revenue.
Cost of revenue for the quarter was $15.1 million, representing 36% of total revenues, compared to 37% in the prior year period. This decrease in cost ratio is attributed to an improved gross margin in Recorded Music.
Operating income for the quarter was $9.6 million, up from $6.5 million in the previous year, reflecting a 47% increase.
Net income for the quarter was reported at $5.3 million, compared to a net loss of $2.9 million in the previous year. The improvement is primarily due to a gain on fair value of swaps and improved gross margins.
Cash provided by operating activities was $33.1 million, while cash used in investing activities was $71.9 million, primarily due to acquisitions of music catalogs.
Reservoir Media's total assets as of December 31, 2024, were $832.4 million, with liabilities of $471.6 million and shareholders' equity of $360.8 million.
The company reported compliance with all financial covenants under its Senior Credit Facility, which had a borrowing capacity of $450 million and remaining availability of $74.2 million.
The filing also outlines ongoing efforts to remediate previously identified material weaknesses in internal controls over financial reporting.
Reservoir Media does not anticipate paying dividends to common stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Reservoir Media Inc.. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.