Hipgnosis throws $1bn at latest song-buying spree, as TikTok rallies revenues
Hipgnosis has thrown over $1bn during its latest stint of song-buying which spans 84 freshly bought back catalogues from the industry’s biggest names.
Like-for-like valuation for Hipgnosis’ portfolio has grown 10.4 per cent during the year to 31 March 2021. Meanwhile, streaming income has lifted 18.4 per cent in the second half of the year.
Hipgnosis, which generates revenue from placing songs in films and TV shows, has snapped up the back catalogues of music icons Neil Young, Fleetwood Mac, Blondie and Shakira.
Shares in the company slipped 0.89 per cent in its afternoon trading, at 111.5p per share.
“Whilst we would never have wished for a pandemic, it has not only demonstrated the predictable, reliable and uncorrelated nature of the income of proven songs but also accelerated the change in consumer behaviour to consuming music by streaming,” founder Merck Mercuriadis said.
The FTSE 250 company has invested over $2bn in total on its songs, across 138 catalogues.
Hipgnosis finished the financial year with net debt of $464.6m, but the founder urged that revenues have been “highly resilient” with paid subscriptions swelling from 30m to 450m.
“Going forward this accelerated streaming will be enhanced as revenues from TikTok, Peloton, Triller, Roblox, and other rapidly emerging digital platforms start to be paid through. These are new income streams, expected to be a material portion of our revenue going forward,” the music boss added.