Hipgnosis Songs Fund Limited has announced its maiden set of financial results.
From June 8, 2018 to March 31, 2019, the company's net asset value grew 4.6% from 98.74 to 103.27p per share. The 12 catalogues it acquired during the period generated revenues of £7.2m – growing by 9% from the prior year on like for like basis – driven by increasing streaming revenues and improved song placement.
The catalogues included The-Dream, Poo Bear, Bernard Edwards, TMS, Tricky Stewart, Giorgio Tuinfort, Itaal Shur, Johnta Austin, Sean Garrett, Rico Love, Ari Levine and Sam Hollander.
Merck Mercuriadis (pictured), founder of Hipgnosis Songs Fund, said: “We are delighted with our maiden final results. Our thesis at listing was very simple. Hit songs are as predictable and reliable and therefore investable as gold or oil. We had access to those proven hit songs and the value of them was going to grow significantly inline with the consumption of music thanks to streaming which makes it more convenient for the consumer to pay for music. Every day there is more evidence to back our thesis.”
Since the period end, Hipgnosis has acquired a further 10 catalogues, adding up to £387 million in completed acquisitions or signed exclusivity of portfolios that include hits from the 1960s through to 2019. These catalogues include Teddy Geiger, Starrah, David A Stewart, Jamie Scott, Michael Knox, Al Jackson Jr and Neal Schon.
