Photo Credit: Round Hill Music
Round Hill Music reports strong revenue growth in Q1 across catalogs supported by active song management, with ‘like-for-like’ revenues increasing 20% year-over-year.
Round Hill Music, an investor in evergreen music catalogs and revenue streams with growth potential, has provided an update on its Q1 earnings. Its portfolio, valued at $602.6 million, includes songs from iconic artists like Alice in Chains, Bush, Celine Dion, Carrie Underwood, The Supremes, Wilson Pickett, and Whitesnake.
Following a strong 2022, Round Hill Music’s positive growth trajectory continued through the first three months of 2023. Combined Net Publisher’s Share (NPS) and Net Label Share (NLS) for the first quarter of 2023 was $10.1 million — up 91% on 2022’s first quarter with $5.3 million.
While most of that growth attributes to acquisitions last year, comprising catalogs from Alice in Chains and Whitesnake’s David Coverdale, like-for-like revenues from the company’s investment increased by 20%. Adjusted income from publishing rights was up 22%, and adjusted income from masters rights was up 14%.
Revenue growth was also driven by the successful proactive management of Round Hill Music’s portfolio of song catalogs by the company’s integrated platform. The company’s investment strategy is focused on songs with enduring appeal and where additional value can be unlocked by tailored management.
The effectiveness of the investment manager’s dynamic 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 $2.1 million in the first quarter, accounting for 21% of group revenue.
Notable sync deals from that period include:
- Louis Armstrong’s “What a Wonderful World,” used in several projects, including the documentary series “Our Universe” on Netflix, the filmI Used to Be Famousand a NEOM: Sustainable City commercial.
- Geoff Mack’s “I’ve Been Everywhere,” featured in a Tripfinder advertising campaign.
- The Backstreet Boys’ “I Want it That Way,” 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 featured in several TV shows, including “Rap Sh!t,” and “Winning Time: The Rise of the Lakers Dynasty.”
“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 focused on iconic music with enduring appeal,” says Josh Gruss, CEO of Round Hill Music.
“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.”
