Hipgnosis maintains catalogue is worth £1.8bn despite shares slump

Hipgnosis, the investment fund that owns the rights to songs by artists such as Britney Spears, Rihanna and Christine McVie, the Fleetwood Mac member who died last week, has kept its catalog value at £1.8 billion despite its shares being discounted. are traded.

In the results for the six months ended September 30, the NAV at the end of the period was 164 pence per share, despite the share price of 81.9 pence yesterday.

The value had fallen to just under 150 pence by December 6, leaving the shares at a 45 percent discount.

Hipgnosis boss and former pop star executive Merck Mercuriadis said the fund’s investment thesis remained “robust” as it reported semi-annual income of £64m, up from £60.6m the year before, while losses fell to £13. 3 million from £14.7 million.

But his optimism masked dissatisfaction with some investors who believe Hipgnosis overpaid for the thousands of songs in its library, which also includes artists like Shakira and the Red Hot Chili Peppers.

Investors have suggested selling minority interests in some catalogs, announcing share buybacks or finding new ways for songs to generate revenue.