(Alliance News) - Hipgnosis Songs Fund Ltd on Monday reported a 16% total net asset value return in the 2021 financial year, as it benefits from the boom in people streaming classic songs in the pandemic.
The Guernsey-registered music investment company said its net asset value increased 11% in the year ended March 31 to USD1.6829 per share, in a trading update ahead of its full-year results. The FTSE 250 company owns the rights to the catalogues of musicians including Neil Young and Fleetwood Mac's Lindsey Buckingham.
That reflects an increased valuation by an independent valuer, as a result of growing royalties from streaming and platforms including TikTok and Peloton Interactive Inc.
Hipgnosis said it is well-placed for growth after an acceleration in the number people signing up to music streaming services. Streaming income increased 18% in the second half of the year from the previous six-month period, the company said.
"At a point in time when the explosion of streaming has transformed music from a discretionary consumer purchase to a utility purchase and new heights of consumption we have acquired amongst the most important songwriter, artist and producer catalogues of all time," Chief Executive Merck Mercuriadis said.
Shares were up 0.1% to 124.27 pence on Monday afternoon.
By Ivan Edwards; ivanedwards@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Hipgnosis Song. (SONG)