Kobalt Reports First Year of Profitability, With 15% Growth in Collections
variety.comJem Aswad Senior Music EditorKobalt today reported that its gross collections grew by 15% to $548 million in the fiscal year ending June 30, 2021.
The company also reported its first-ever year of profitability with $48.5 million EBITDA. The company also said it expects to approach $625 million in gross collections and near $65 million in EBITDA profit for the next fiscal year ending June 30, 2022.In the fiscal year ending June 30, 2021, Kobalt sold two businesses: In May 2021, it sold its AWAL label services company and neighboring rights businesses for $430 million, which yielded a gain of over $335 million (and was recently approved by U.K.
regulators). Before that, Kobalt’s regulated music fund business, Kobalt Capital sold Fund I to Hipgnosis in November 2020 for $323 million.
In the company’s current fiscal year, Kobalt Capital sold Fund II to KKR and Dundee Partners for $1.1 billion. “This past couple of years have been transformative for Kobalt,” said CEO Laurent Hubert. “Our financial success starts with our team who support some of the best songwriters in the world.
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