The valuation of the Hipgnosis portfolio increases, the income flows up


Intellectual property investment company Hipgnosis Songs Fund said on Monday that the value of his portfolio rose double digits in the twelve months ended March 31.

Hipgnosis saw a 10.4% increase in like-for-like valuation across its entire portfolio, while the company’s operating net asset value rose 11.3% to $ 1.6829 per share.

The FTSE 250-listed group said catalog revenue had been “very resilient” throughout the Covid-19 pandemic, with the group “well positioned” for future growth after streaming revenue increased by 18 , 4% in the second half of the year.

Hipgnosis attributed its “remarkable year” to its decisions to purchase catalogs featuring music by Neil Young, Fleetwood Mac, Blondie and Barry Manilow.

Following this strong performance, Hipgnosis raised its annual dividend target from 5% to 5.25p per ordinary share.

Founder Merck Mercuriadis said, “Revenue has been very resilient during this incredibly difficult year and is well positioned for future growth, with global streaming adoption exceeding all expectations, seeing 30.0 million paid subscribers when we started to reach 450.0 million paying subscribers today with what is expected to be 2.0 billion paid subscribers by the end of the decade.

“It turned music from a discretionary or luxury purchase into a utility because of the convenience and access that streaming offers. Going forward, this accelerated streaming will be enhanced as TikTok’s revenue increases. Platoon, Triller, Roblox and other rapidly emerging digital platforms are starting to get paid. “

As of 9:00 a.m. BST, Hipgnosis shares were down 0.12% to 122.25p.


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