London-based Hipgnosis Songs Fund Ltd. said Thursday that revenue for the fiscal year ended March 31 was up 24.7 percent, “in part”
because of the catalog acquisitions in the period.”
The powerhouse for song rightsFounded in 2018 by Merck Mercuriadis, a former music executive for the likes of Elton John, Beyoncé and Guns N’ Roses, it reported annual sales of $200.4 million, compared to $160.7 million the previous year.
A key measure of profitability, earnings before interest, taxes, depreciation and amortization (EBITDA), rose 21.8 percent to $129.9 million. But amid higher costs, the company, whose shares are listed in London, made an operating loss of $16.7 million in the fiscal year, compared to a profit of $44.5 million in the prior fiscal year. Royalty costs for the year rose to $32.0 million from $22.5 million, the company said.
Hipgnosis also emphasized on Thursday that its portfolio now includes 146 catalogs with 65,413 songs worth a total of $2.69 billion. It acquired eight catalogs in the past fiscal year, featuring songs from the Red Hot Chili Peppers, Fleetwood Mac’s Christine McVie, Heart’s Ann Wilson, and Rhett Akins.
“Over the past four years, we have acquired an incomparable portfolio of some of the most successful and culturally significant songs of all time, now valued at $2.7 billion,” said Mercuriadis, who is also the CEO of Hipgnosis Song Management, the investment advisor. of the fund. † “The unique strength of our catalog is demonstrated by the 9.9 percent increase in operating net asset value (NAV) to $1.8491 per share, as reported by our independent portfolio appraiser.”
He also spoke about the current economic clouds and rising inflation. “As we look ahead, we continue to expect strong global revenue growth, driven by the continued adoption of paid streamMercuriadis said. “Despite the macroeconomic environment, the attractiveness of the music streaming proposition continues to grow. It is the cheapest entertainment subscription service and offers the most comprehensive range of on-demand entertainment subscription services by offering a nearly complete repertoire of worldwide music.”
In May, Hipgnosis revealed a deal to acquire Justin Timberlake’s song catalog, who said Mercuriadis “values artists and their creative work and has always been a big believer in songwriters and storytelling.”