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© Reuters. File photo: In this illustration taken on June 28, 2021, a headset can be seen in front of the Hipgnosis logo displayed. REUTERS/Dado Ruvic/Illustration/File Photo Global Business Weekly
(Reuters)-The Hipgnosis Songs Fund, which owns the rights of artists such as Neil Young and Shakira, raised its dividend on Monday and said that as the pandemic accelerates the shift to online listening, it expects higher streaming revenues in the future.
The company earns royalties every time it plays a song it owns. The company said its annual pre-tax profit increased by 7% to $44.5 million, and its net asset value increased by 11.3% to $1.68 per share.
“As TikTok, Peloton (NASDAQ:), Triller, Roblox, and other rapidly emerging digital platforms begin to pay for their revenue, this accelerated streaming will be strengthened,” CEO Merck Merklia Diss said.
“We are entering an era. For the first time in history, almost all music consumption is paid.”
Due to the closure of live concerts due to the COVID-19 pandemic, the company has spent hundreds of millions of pounds buying the copyrights of classic and newer songs.
Hipgnosis raised its annual dividend target by 5% to 5.25 pence per share, and stated that its 138 catalog portfolio valued at approximately $2 billion increased by 10.4% in the year ended in March.
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