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FTSE 250 movers: Hipgnosis hits the right note, while Home REIT feels the heat

By Frank Prenesti

FTSE 250: 18,879.27 -0.27% at 1530 GMT.
Hipgnosis Songs Fund reported a jump in half-year revenues on Thursday, boosted by strong growth in streaming.

Gross revenues at the music-focused investment trust jumped 7.5% in the six months to 30 September, to $91.7m, while net revenues came in at $78.4m, up from $74.1m a year previously.

Earnings before interest, tax, depreciation and amortisation increased 16.9% to $63.8m, and the operating loss narrowed to $16.3m from $18m.

Net asset value per share was 164.06p compared to 140.79p on 31 March 2022.

Hipgnosis, which acquires artists’ back catalogues and song rights, has a portfolio consisting of 146 catalogues and 65,413 songs, with an aggregate fair value of $2.67bn, including Blink 182′ All The Small Things – a version of which was used in the John Lewis Christmas advert – and Mariah Carey’s All I Want for Christmas Is You.

Hipgnosis attributed its first-half performance to strong growth in both streaming and synch. The synch unit places songs into adverts, television shows and video games.

Merck Mercuriadis, founder and chief executive, said: “These results demonstrate Hipgnosis’ investment thesis remains robust, with continued growth in a challenging environment. Our pro forma revenues show strong growth from streaming and synch, proving our acquisition strategy and demonstrating our ability to maximize our portfolio’s value with our song management.

“This performance has ensured our portfolio valuation and our NAV have remained stable.

“In the wider music market, people continue to listen to and pay for music irrespective of cost of living challenges, with annual audio streams in the US passing the one trillion mark for the first time.”

Wizz Air flew higher after an upgrade to ‘buy’ at Bank of America Merrill Lynch.

Home REIT’s woes continued as the stock fell 5% amid pressure from activist shareholders for a change of leadership.

FTSE 250 – Risers

Wizz Air Holdings (WIZZ) 2,397.00p 4.86%
Aston Martin Lagonda Global Holdings (AML) 140.95p 4.37%
Wood Group (John) (WG.) 129.45p 3.52%
SSP Group (SSPG) 229.90p 3.23%
Hipgnosis Songs Fund Limited NPV (SONG) 82.50p 3.12%
Schroder Oriental Income Fund Ltd. (SOI) 256.50p 2.60%
BlackRock World Mining Trust (BRWM) 686.00p 2.54%
Redde Northgate (REDD) 407.00p 2.52%
TUI AG Reg Shs (DI) (TUI) 144.20p 2.49%
Diversified Energy Company (DEC) 119.60p 2.48%

FTSE 250 – Fallers

Mitchells & Butlers (MAB) 140.70p -6.94%
Synthomer (SYNT) 120.70p -6.43%
Home Reit (HOME) 47.30p -5.59%
Victrex plc (VCT) 1,572.00p -4.50%
IP Group (IPO) 59.15p -4.13%
SDCL Energy Efficiency Income Trust (SEIT) 101.00p -3.99%
Moonpig Group (MOON) 132.40p -3.85%
Telecom Plus (TEP) 2,210.00p -3.70%
Sirius Real Estate Ltd. (SRE) 80.60p -3.70%
Shaftesbury (SHB) 344.40p -3.69%

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