Stingray profit, streaming subscribers down in Q1; revenues rise

Profits at Stingray Group Inc. took a dive in the first quarter of fiscal 2025, dropping by nearly 50 per cent, while its revenues rose due to soaring earnings in the U.S. Net income was almost halved at $7.29 million or $0.11 per share for the quarter ended June 30, down 48.3 per cent from $14.1 million in the same period last year. “The decrease was mainly due an unrealized loss in the current period compared to an unrealized gain in the comparative period on the fair value of derivative financial instruments and to a one-time settlement gain on a trademark dispute in the comparative period, partially offset by higher operating results,” the Montreal-based company stated in its report. Adjusted net income was $13.9 million, up 17.2 per cent from almost $11.9 million in Q1 of the previous year. Stingray’s revenues increased by 12.8 per cent year-over-year to almost $89.1 million, up from approximately $79 million. The company credited the jump to its FAST channels and retail media advertising in the United States. Revenues spiked significantly in the U.S., soaring 46.5 per cent to $28 million, from $19.1 million in Q1 last year. In Canada, revenues rose more modestly by 3.7 per cent or $1.7 million to $49 million. Elsewhere in the world, revenues dipped less than one per cent, from $12.6 million in the same period last year to $12.1 million this quarter. Stingray said it has reached a run-rate of 55 million listening hours per quarter via FAST channels. “We’re highly confident about doubling FAST channel revenues this year,” said Stingray’s co-founder and CEO Eric Boyko in a press release alongside the release of results Wednesday. In June, Stingray announced it was “expanding” the array of ad-supported music it offers for free via Roku Inc. in Canada and the U.S. with four new FAST channels. FAST channel and retail media advertising growth drove a 20.5 per cent increase in broadcasting and commercial music revenues for the company, up $9.7 million to $56.9 million year-over-year. Stingray did lose some of its streaming subscribers during the quarter. It ended the period with 788,180 subscribers, down 0.9 per cent from the same period last year. Radio revenues were up 1.3 per cent or $400,000 to $32.2 million because of higher digital revenues, Stingray reported. Its broadcasting and commercial music business revenues were up 20.5 per cent to $56.9 million. The company also applauded growth in its in-car entertainment business, hitting double-digit revenue growth in the first quarter this year. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was up 9.9 per cent to almost $31.1 million from nearly $28.3 million in the same quarter last year. Adjusted free cash flow was $15.5 million for the quarter, down from $18.5 million due to higher income taxes paid, partially offset by improved operating results, the company reported. Stingray’s net debt by the end of the quarter was $362.2 million, down from $388 million in the same period last year. - Reporting by Hannah Daley at hdaley@thewirereport.ca.

Stingray profit, streaming subscribers down in Q1; revenues rise

Broadcast | | August 7, 2024

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Stingray profit, streaming subscribers down in Q1; revenues rise

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