MBW’s Stat Of The Week is a collection wherein we present why a single information level deserves the eye of the worldwide music business. Stat Of the Week is supported by Cinq Music Group, a technology-driven report label, distribution, and rights administration firm.
It’s been an enormous week for stats relating to publicly-traded music firms. First got here Spotify, which reached an all-time share value excessive of $325 on Wednesday lunchtime (ET), leading to a market cap of simply over $60 billion. Spotify’s market cap valuation (presently at $59bn) has subsequently greater than doubled because the begin of 2020.
At present (December 4) brings one other set of blockbuster numbers from a public firm: the Merck Mercuriadis-led rights home Hipgnosis Songs Fund, which floated on the London Inventory Trade in summer time 2018.
The primary of these blockbuster numbers comes from Mercuriadis himself: “We’ve been one of many FTSE 250’s largest yielders and have now reached a £1.25 billion market cap.”
In US greenback phrases, that places a market cap worth on Hipgnosis – an organization that’s lower than three years previous – of roughly $1.68bn.
There are a lot of extra attention-grabbing figures inside Hipgnosis’ new half-year interim report, masking the six months to finish of September 2020.
The primary pertains to Hipgnosis’ revenues. Hipgnosis generated £50.04m (approx $67m) in gross income the six months to finish of September, greater than double the £22.64m it generated within the prior yr’s equal interval.
Some £5.29m of that £50.04m was subsequently paid out in royalty prices through the six-month 2020 interval, which – when curiosity can also be thought-about – resulted in £44.80m (roughly $60m) in web revenues.
Clearly, that places Hipgnosis heading in the right direction to generate over $120m in web revenues throughout the 12 months of its present fiscal yr, ended March 31, 2021.
Some extra intriguing stats for Hipgnosis watchers: largely because of the firm’s current $323m acquisition of a Kobalt catalog of over 33,000 songs, Hipgnosis ended September with 57,836 songs in its portfolio.
That was up by 44,545 on the 13,291 songs Hipgnosis owned (or owned cuts of) on the finish of March this yr.
In accordance with Hipgnosis’ six-monthly report, the corporate spent a complete of roughly £1.18bn on 117 catalogs between the purpose of its 2018 IPO and the top of September this yr.
Catalogs acquired by Hipgnosis through the pandemic interval (i.e. throughout April-September this yr) included music and/or income streams from the likes of Nikki Sixx, Chrissie Hynde, L.A Reid, RZA, Rick James and No ID.
The report confirms: “Since launch we’ve got now acquired 117 Catalogues, comprising over 57,836 Songs, for an combination consideration of £1.18 billion, representing a blended acquisition a number of of 14.76x historic annual revenue.”
MBW’s Stat Of The Week: Hipgnosis Songs Fund spent £1.18bn on songs within the two years to finish of September 2020 – and is heading in the right direction to generate $120m in revenues within the 12 months to finish of March 2021.
One in every of Hipgnosis’ largest strikes within the six months to finish of September was its acquisition of US-based Large Deal Music Group, which not solely introduced Hipgnosis the rights to 4,400 songs, but in addition meant it may launch its personal in-house publishing administration service within the States, all below the Hipgnosis Songs Group model, led by Large Deal founder Kenny MacPherson.
Hipgnosis’ report doesn’t put a value on the Large Deal acquisition, nevertheless it does reveal: “The consideration for this acquisition was funded from the proceeds of Hipgnosis’ fairness fundraise in July 2020 [in addition to] the problem of 17,609,304 new Extraordinary Shares (“Consideration Shares”) issued at a value of 120.65 pence per Extraordinary Share.”
The whole worth of the 17.61m ‘Consideration Shares’ handed to Large Deal’s house owners was subsequently £21.25m (approx $29m), with the extra money a part of the buyout remaining an unknown determine.
Hipgnosis’ report additional clarifies: “6,248,351 of [these] Consideration Shares had been topic to lock up restrictions to 1 October 2020, with 10,123,219 Consideration Shares topic to lock up restrictions to 1 April 2021.”
In a bit of the interim report praising the staff behind Hipgnosis, Merck Mercuriadis says: “In the course of the interval we’ve got reworked our Track Administration experience, notably making three appointments of the best calibre on the Funding Adviser in Ted Cockle, Amy Thomson and Nick Jarjour who’ve joined as President, Chief Catalogue Officer and International Head of Track Administration respectively.
“Additional to this, our acquisition of Large Deal Music, now re-branded Hipgnosis Songs Group, in Los Angeles, provides us Kenny MacPherson, CEO – who is without doubt one of the most revered tune males in our business during the last 35 years in addition to Co-Presidents Jamie Cerreta and Casey Robison, Dave Ayers EVP in New York and Pete Robinson SVP in Nashville.
“We’ve got subsequently additionally appointed Tony Barnes, former Virgin EMI Director, as our EVP of Digital and Innovation. We now have greater than 70 individuals globally, together with our Advisory Board.”
Within the interim report, which you’ll learn in full right here, Mercuriadis provides: “The current information of a vaccine(s) has given us all hope that the pandemic will quickly be behind us, which is able to enhance efficiency additional nonetheless, however for the second we’ve got to be cognisant that there are necessary challenges forward.
“I imagine that we’re effectively positioned to climate all of them and to proceed to determine ourselves as not solely a vital alternative for traders but in addition as one of the necessary catalysts reworking the Track business and the Songwriter’s place in it globally.”
Cinq Music Group’s repertoire has received Grammy awards, dozens of Gold and Platinum RIAA certifications, and quite a few No.1 chart positions on quite a lot of Billboard charts. Its repertoire contains heavyweights corresponding to Unhealthy Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and lots of extra.Music Enterprise Worldwide