TIDMRHM
RNS Number : 5648A
Round Hill Music Royalty Fund Ltd
25 May 2023
25 May 2023
LEI: 213800752UO1CJTV8C39
Round Hill Music Royalty Fund Limited
("Round Hill Music" or the "Company")
Q1 2023 Trading Update
Continued strong revenue growth across catalogues supported by
active song management
Round Hill Music (LSE: RHM), which invests in evergreen music
catalogues with proven longevity and revenue streams that have
growth potential, provides a trading update on the three months to
31 March 2023. The Round Hill Music portfolio of catalogues, valued
at US$602.6 million [1] (as at 31 December 2022), includes enduring
songs by artists such as the iconic 90s Seattle band Alice In
Chains, British Rock band Bush, Celine Dion, country music star
Carrie Underwood, The Supremes, Wilson Pickett and Whitesnake.
Following its strong performance in 2022, the Company's positive
growth trajectory continued through the first three months of 2023.
Combined Net Publisher's Share ("NPS") and Net Label Share ("NLS")
[2] for the first quarter of 2023 was US$10.1 million, up 91% on
the first quarter of 2022 (US$5.3 million).
While the majority of this income growth was due to acquisitions
last year, comprising catalogues from Alice In Chains and
Whitesnake's David Coverdale, like-for-like revenues from the
Company's Initial Investments [3] increased by 20%. Within this,
adjusted income from publishing rights was up 22% and adjusted
income from masters rights was up 14%. [4] Income from the Carlin
interest increased by US$1.0 million, or +200%, due to the improved
collections of uncollected digital income from our sub-publisher
which collects in territories outside the US, UK and Nordic
countries.
Revenue growth was also driven by the successful proactive
management of the Company's portfolio of song catalogues by Round
Hill Music LP's (the 'Investment Manager') c.70-strong integrated
platform. The Company's investment strategy is focused on songs
with enduring appeal and where additional value can be unlocked by
careful and tailored management by its creative team of
specialists.
The effectiveness of the Investment Manager's dynamic and
considered approach is illustrated by the increase in revenue from
sync placements, up 74% year-on-year for the Initial Investments.
Total sync income grew to US$2.1 million in the first quarter,
accounting for 21% of Group Revenue. Notable sync deals from the
period include:
-- Louis Armstrong's 'What a Wonderful World', which was used in
several projects including UK documentary series 'Our Universe' on
Netflix; the film 'I Used to be Famous'; and a Neom: Sustainable
City commercial
-- 'I've been Everywhere' by Australian country singer Geoff
Mack, which featured in a Tripfinder advertising campaign
-- The Backstreet Boys' 'I want it that Way', which featured in
a commercial for laundry brand Downy Rinse and Refresh
-- Lil Wayne's 'Uproar', which samples Brian Holland's 'You Keep
Me Hangin' On' and which was placed in several TV shows including
'Rap Sh!t' and 'Winning time: The Rise of the Lakers Dynasty'
Josh Gruss, CEO of Round Hill Music LP, commented:
"These first quarter results reconfirm our positive outlook for
the year ahead. The revenue growth we have delivered, both actively
and organically, reflects the quality and expertise of our in-house
platform, composed of people who are passionate about our songs, as
well as the strength of our prudent investment strategy which
focuses on iconic music with enduring appeal. These results, which
are further supported by the beneficial music industry tailwinds
that show no sign of dissipating, provide a solid foundation and
reason for continued optimism."
FOR FURTHER INFORMATION
Round Hill Music LP
Josh Gruss, Founder and Via Fourth Pillar below
CEO
Steve Clark, COO
Cenkos
Sales:
Justin Zawoda-Martin +44 20 7397 1923
Daniel Balabanoff +44 20 7397 1909
Andrew Worne +44 20 7397 1912
Corporate:
James King +44 20 7397 1913
Will Talkington +44 20 7397 1910
Fourth Pillar (Financial
PR)
Claire Turvey +44 7850 548 198 / claire@thefourthpillar.co.uk
Lynne Best +44 7763 619709 / lynne@thefourthpillar.co.uk
Tomas Nevrkla +44 7963 548865 / tomas@thefourthpillar.co.uk
JTC
Mariana Enevoldsen +44 1481 702 485
About Round Hill Music Royalty Fund Limited
Round Hill Music Royalty Fund invests in high quality, evergreen
music catalogues that have proven longevity and revenue streams,
with the aim of providing investors with an attractive level of
regular and growing income and capital returns, underpinned by the
positive structural drivers of the global music industry.
The portfolio, valued at US$602.6 million [5] as at 31 December
2022, is diversified by income stream and music genre, with value
created through the proactive and careful management and
commercialisation of the repertoire through synchronisation
(placement in films, television series and brand campaigns);
licensing; data cleaning; and distribution (including across
platforms such as Amazon Music, Apple Music, Deezer, and
Spotify).
Its 51 catalogues, totalling over 120,000 songs, include music
performed by artists such as Alice in Chains, Bonnie Tyler, Bruno
Mars, Céline Dion, Lady A, Louis Armstrong, The Offspring, The
Supremes, Whitesnake and Wilson Pickett.
The portfolio of rights includes copyright interests in a
musical composition or song (which can be the writer's share,
publisher's share and/or performance rights), the rights to the
recording of a musical composition or song (the master recording
rights), as well as music rights and assets that meet the Company's
investment strategy and objectives. The Company is a non-cellular
Guernsey company.
A playlist of RHM's top 50 earners can be listened to on Spotify
here . We recommend it served loud.
About Round Hill Music LP (the Investment Manager)
Founded in 2010, Round Hill Music LP is a fully integrated owner
and operator of music copyright properties. It currently manages
150+ catalogues, totalling 330,000+ songs with a combined value of
c.US$1.2 billion.
With c.70 employees located in the major music and entertainment
markets of Nashville, New York, Los Angeles and London, Round Hill
Music LP has an experienced management and investment team with an
established reputation and extensive expertise in the music and
finance industries.
[1] Includes net recoupable advances to songwriters of US$3.8
million.
[2] Net Publisher Share ("NPS") is the amount received by the
music publisher after deduction of all fees, commissions and all
royalties and other shares of income payable to third parties. Net
Label Share ("NLS") is the amount received by the owner of master
recordings after deduction of all fees, commissions and all
royalties and other shares of income payable to third parties.
[3] Represents the First Investment (Round Hill Fund One
excluding the Carlin Investment) and the Carlin Investment.
[4] Publishing income adjusted for a delay in the receipt of
royalty statements from February 2022 that were not processed until
April 2022. Masters income adjusted to exclude certain one-time
expenses including a delayed royalty expense from the second half
of 2022 that was processed in the first quarter of 2023.
[5] Includes net recoupable advances to songwriters of US$3.8
million.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTPPURCAUPWGQC
(END) Dow Jones Newswires
May 25, 2023 02:00 ET (06:00 GMT)
Round Hill Music Royalty (LSE:RHMP)
Historical Stock Chart
From May 2024 to Jun 2024
Round Hill Music Royalty (LSE:RHMP)
Historical Stock Chart
From Jun 2023 to Jun 2024