RCS - Round Hill Music - Positive NPS Trading Update
20/12/2022 07:00
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RNS Number : 2266K Round Hill Music Royalty Fund Ltd 20 December 2022
20 December 2022
ROUND HILL MUSIC ROYALTY FUND LIMITED
(the "Company")
Registration number: 68002
Legal Entity Identifier: 213800752UO1CJTV8C39
Positive NPS Trading update
36.1% Year-over-year NPS Increase for 9 Months to 30 September 2022
Round Hill Music Royalty Fund Limited is pleased to report that the Net
Publisher's Share(1) ("NPS") for the Company's Portfolio in the first nine
months of 2022 was US$21.8 million compared to US$16.0 million for the nine
months to 30 September 2021, representing a 36.1% year-over-year increase.
The strong growth in year-over-year NPS was driven by robust performance from
multiple catalogues along with successful synchronisation placements and
licensing fee income.
· The Initial Portfolio Investment(2), which accounts for 85.2% of the
Company's NPS, produced 15.9% organic growth year-over-year.
· The Company received advance licensing fee payments from some
digital services in 2022, which contributed to a 147.7% year-over-year
increase in streaming revenue.
· Stripping out these licensing fees, NPS from the Initial Portfolio
Investment grew 9.7% year-over-year, driven by several contributing factors
including the below:
o A large amount of income was received from Audiam, a digital collection
agency, which also helped contribute to the 147.7% growth in streaming
revenue.
o Synchronisation income increased 46.7% in 2022 due to two large placements
licensed directly by the Investment Manager, as Portfolio administrator:
§ Placements for Eric Carmen's "All By Myself" accounted for almost half
of the total increase in synchronisation income. These placements included
advertisements for Adobe and TD Bank.
§ The portion of Andreas Carlsson's catalogue administered by the
Investment Manager generated US$150,000 of synchronisation income. "I'm Alive"
by Celine Dion was placed in the trailer for the French film La vraie vie
d'Aline Dieu and "Waking Up In Vegas" by Katy Perry was placed in an
advertisement for BEHR Music In Color.
o The Offspring has seen strong 2022 performance year-over-year, bolstered
by the July Round Hill Records release of their Greatest Hits album on vinyl
and a busy 2022 touring schedule. Publishing NPS for the iconic American rock
band is up 71.3% year-over-year, and Masters Net Label Share(3) ("NLS") is up
12.3% for the same period. The Offspring catalogue (publishing and masters)
represents the Company's largest portfolio position by value.
o The Carlin catalogue produced a strong third quarter and publishing NPS is
up 18.4% year-over-year vs. a relatively flat year-over-year for the six
months to 30 June 2022.
o Publishing NPS for the Eric Carmen catalogue is up 53.6% year-over-year.
The catalogue includes hits like "Hungry Eyes" and "All By Myself."
· Catalogues acquired in 2021 and early 2022 with the C Share
proceeds generated significant acquisition NPS growth including Trevor Rabin,
Rebelution, Alice in Chains and David Coverdale.
(1)Net Publisher’s Share 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. For the avoidance of doubt, it does not
include accrued income.
(2)Representing the seed portfolio acquired from Round Hill Music Royalty Fund
LP including its minority interest in RH Carlin Holdings LLC.
(3)Net Label Share 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. For the avoidance of doubt, it does not include accrued income.
Josh Gruss, Founder and CEO of Round Hill Music LP, the Company's Investment
Manager, commented:
"I'm delighted with the significant increase in NPS seen from the Company's
portfolio's underlying catalogues. We continue to strongly believe in the
positive fundamentals of the music industry despite the challenging macro
environment and this update again points to the lack of correlation with the
earnings of the asset class to equity market movements. There is much to be
excited about as we head into the end of 2022 and we look forward to
continuing to optimise these valuable assets through our active catalogue
management to deliver a strong portfolio performance."
FOR FURTHER INFORMATION
Round Hill
Josh Gruss, Founder and CEO via Buchanan below
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
Buchanan
Charles Ryland +44 20 7466 5107
Henry Wilson +44 20 7466 5111
Hannah Ratcliff +44 20 7466 5102
JTC
Mariana Enevoldsen +44 1481 702 485
Notes:
Unless the context otherwise requires, capitalised terms used in this
announcement have the meanings in the Company's prospectus published on 19
October 2020, as supplemented by a supplementary prospectus published on 3
November 2020.
About Round Hill Music Royalty Fund Limited
The Company is a non-cellular Guernsey company. The Company's investment
objective is to provide investors with an attractive level of regular and
growing income and capital returns from investment primarily in high quality,
music intellectual property. In order to achieve this, the Company invests in
a songwriter's copyright interest in a musical composition or song (being
their writer's share, their publisher's share and their performance rights)
together with the rights in the recording of the musical composition or song
(known as the master recording rights) together with all such rights and
assets considered by its investment manager, Round Hill Music LP, to be
ancillary thereto.
About Round Hill Music LP
Founded in 2010, Round Hill Music LP is a fully integrated owner and operator
of music copyright properties. With offices in Nashville, Los Angeles and
London, Round Hill Music LP has an experienced management and investment team
with an established reputation and extensive experience in the music and
finance industries.
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