25th May 2023 10:50
(Alliance News) - Round Hill Music Royalty Fund Ltd on Thursday praised the long lasting appeal of major artists such as Celine Dion, as its portfolio of tracks saw positive growth in the first quarter.
Round Hill, which invests in evergreen music catalogues, has a portfolio which includes songs by artists such as Dion, Carrie Underwood, The Supremes, Bonnie Tyler and Bruno Mars.
In the three months to March 31, combined net publisher's share and net label share rose 91% to USD10.1 million from USD5.3 million a year prior.
While the majority of this growth was due to acquisitions made last year, like-for-like revenue from initial investments was up 20%, the Guernsey-based company said. Adjusted income from publishing rights was up 22%, while adjusted income from masters rights was up 14%.
Round Hill was keen to highlight the impact of investment strategy on revenue from sync placements. Total sync income grew to USD2.1 million in the first quarter, accounting for 21% of group revenue.
Louis Armstrong's 'What a Wonderful World', for example, was used in several projects on Netflix, as well as for a commercial. Similarly, the Backstreet Boys' 'I want it that Way' was featured in an advert for laundry brand, Downy Rinse and Refresh.
Chief Executive Officer Josh Gruss told investors that the first quarter had reconfirmed Round Hill's positive outlook for the year ahead. Revenue growth was a reflection, he said, "of the quality and expertise of our in-house platform", and "the strength of our prudent investment strategy which focuses on iconic music with enduring appeal".
Round Hill Music shares were trading 0.7% higher at USD0.75 in London on Thursday morning. The stock is down 29% over the past 12 months.
By Holly Beveridge, Alliance News reporter
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