Dec 8 (Reuters) – Pop stars Mariah Carey and Michael Bublé’s widespread Christmas songs are bolstering Hipgnosis Songs Fund (SONG.L) within the run as much as the vacations, because the London-listed music catalogues investor continues to capitalise on the increase in music streaming.
The corporate’s portfolio has greater than 65,000 songs, and consists of “Queen of Christmas” Carey’s 1994 music “All I Need for Christmas Is You”, which is a well-liked Christmas customary and has been topping the Billboard Scorching 100 chart throughout the holidays yearly since 2019.
Hipgnosis has co-owned the music since 2020, with founder and Chief Govt Officer Merck Mercuriadis’ steadily pushing to construct the corporate’s roster because the pandemic drove individuals to take heed to data on-line, making streaming extra profitable.
Final yr, personal fairness agency Blackstone Inc (BX.N) agreed to deploy round $1 billion in partnership with Hipgnosis in a wager on the streaming increase, which the latter says in not going away anytime quickly.
“Within the wider music market, individuals proceed to take heed to and pay for music no matter in the present day’s value of dwelling challenges,” Mercuriadis stated on Thursday.
Hipgnosis, which owns rights to catalogues of artists together with Neil Younger and Shakira, added it additionally benefited from widespread UK retail chain John Lewis utilizing a observe from its assortment by the rock band Blink-182 for its seasonal advert.
“Robust streaming development from conventional sources, along with worth rises, and revenues from new rising platforms, are additionally tailwinds,” analysts at JPMorgan wrote in a notice.
Hipgnosis stated underlying web income grew 5.8% year-on-year to $65.1 million within the six months to September.
Inventory was up 3% by 1515 GMT.
Reporting by Pushkala Aripaka and Yadarisa Shabong in Bengaluru; Modifying by Krishna Chandra Eluri
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