Hipgnosis predicts higher streaming profits after strong year

A helmet is seen in front of a Hipgnosis logo displayed in this illustration taken June 28, 2021. REUTERS / Dado Ruvic / Illustration / File Photo GLOBAL BUSINESS WEEK AHEAD

July 5 (Reuters) – Hipgnosis Songs Fund (SONG.L), the owner of the rights to artists including Neil Young and Shakira, increased its dividend on Monday and said it expects higher streaming revenue at the future as the pandemic accelerates the online listening movement.

The company, which collects royalties every time a song it owns is streamed, said its annual pre-tax profit rose 7% to $ 44.5 million and net asset value jumped by 11.3% to $ 1.68 per share.

“Going forward, this accelerated streaming will be enhanced as revenues from TikTok, Peloton, Triller, Roblox and other emerging digital platforms begin to be paid,” said managing director Merck Mercuriadis.

“We are entering an era where now, for the first time, almost all music consumption is paid for.”

The company has spent hundreds of millions of pounds to buy the rights to classics as well as new hits as part of a live concert halt due to the COVID-19 pandemic.

Hipgnosis raised its annual dividend target from 5% to 5.25 pence per share and said its portfolio of 138 catalogs worth around $ 2 billion saw a 10.4% increase in its valuation at constant scope during the fiscal year ended in March.

Reporting by Muvija M in Bengaluru; Editing by Amy Caren Daniel

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