- Organic growth of 23.9% year-over-year in Broadcast and Recurring Commercial Music Revenues mainly due to strength in retail media advertising;
- Revenues increased 12.4% to
$100.3 million from$89.2 million ; - Adjusted EBITDA(1) increased 12.2% to
$38.6 million from$34.5 million . Adjusted EBITDA by segment was$27.9 million or 42.5% of revenues for Broadcasting and Commercial Music,$12 .3 million or 35.6% of revenues for Radio and $(1.6) million for Corporate; - Net income was
$9.1 million ($0.13 per share(1)) compared with$12.9 million ($0.19 per share(1)); - Adjusted Net income(1) increased to
$18.5 million ($0.27 per share(1)) compared with$16.5 million ($0.24 per share(1)); - Cash flow from operating activities increased 25.6% to
$30.9 million ($0.45 per share(1)) compared to$24.6 million ($0 .35 per share(1)); - Adjusted free cash flow(1) increased 80.6% to
$32.7 million ($0.47 per share(1)) compared to$18.1 million ($0.26 per share(1)); - Net debt to Pro Forma Adjusted EBITDA(1) ratio of 2.99x, compared with 3.34x;
- 810,000 streaming subscribers, up 0.6% over Q3 2023; and
- 372,400 shares repurchased and cancelled for a total of
$1.9 million , compared with 340,900 shares repurchased and cancelled for a total of$1.6 million .
Financial Highlights (in thousands of Canadian dollars, except per share data) | Three months ended | Nine months ended | |||||
2024 | 2023 | % | 2024 | 2023 | % | ||
Revenues | 100,278 | 89,242 | 12.4 | 261,763 | 245,013 | 6.8 | |
Adjusted EBITDA(1) | 38,648 | 34,450 | 12.2 | 96,432 | 87,567 | 10.1 | |
Net income | 9,070 | 12,944 | (29.9 | ) | 32,577 | 25,672 | 26.9 |
Per share – diluted ($) | 0.13 | 0.19 | (31.6 | ) | 0.47 | 0.37 | 27.0 |
Adjusted Net income(1) | 18,483 | 16,464 | 12.3 | 44,930 | 40,534 | 10.8 | |
Per share – diluted ($) | 0.27 | 0.24 | 12.5 | 0.65 | 0.58 | 12.1 | |
Cash flow from operating activities | 30,902 | 24,605 | 25.6 | 74,263 | 59,397 | 25.0 | |
Adjusted free cash flow(1) | 32,655 | 18,085 | 80.6 | 66,690 | 48,753 | 36.8 | |
(1) This is a non-IFRS measure and is not a standardized financial measure. The Corporation’s method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, the definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Refer to “Non-IFRS Measures” on page 4 of this news release for more information about each non-IFRS measure and refer to pages 5-6 for the reconciliations to the most directly comparable IFRS financial measures.
Reporting on third quarter results for fiscal 2024, Stingray's President, co-founder and CEO
“Stingray delivered exceptional third-quarter results, surpassing the
“Turning to in-car entertainment, the initial deployment of Stingray Karaoke in 300,000 BYD cars is steadily progressing and we further expanded our partnership with the world’s leading manufacturer of new energy vehicles through the launch of Calm Radio in models across dozens of countries. This latest agreement is highly significant because it diversifies our automobile product offering into the wellness space to enhance the driver’s journey, while highlighting our emerging relevance in the global in-car entertainment landscape.”
“Altogether, revenues for our Broadcasting and Commercial Music business increased 21.2% to
Third Quarter Results
Revenues increased
For the quarter, revenues in
Revenues in
Revenues in Other countries decreased
Broadcasting and Commercial Music revenues increased
Consolidated Adjusted EBITDA(1) improved
Net income totaled
Adjusted net income(1) reached
Cash flow generated from operating activities totaled
As at
Declaration of Dividend
On
The Corporation’s dividend policy is at the discretion of the Board of Directors and may vary depending upon, among other things, our available cash flow, results of operations, financial condition, business growth opportunities and other factors that the Board of Directors may deem relevant.
The dividends paid are designated as "eligible" dividends for the purposes of the Income Tax Act (
Business Highlights and Subsequent Events
- On
January 22, 2024 , the Corporation announced the launch of five video channels on Xiaomi TV+, a free ad-supported TV streaming service platform. This successful cooperation was made possible through the commercial support and expertise of THEMA, a Canal+ company. The offering is now live and available on all Android TVs (through Xiaomi TV+ App download) inGermany ,Italy ,Spain ,France , and theUnited Kingdom , providing a rich and diverse content experience to all viewers across these countries. Further expansion to other countries is planned for next year. - On
January 10, 2024 , the Corporation announced that Stingray Karaoke will be featured as an in-car entertainment service in the innovative and luxurious AFEELA Prototype manufactured bySony Honda Mobility Inc. . This collaboration was showcased at the 2024 Consumer Electronics Show (CES) and represents the start of future collaboration between the companies. - On
January 8, 2024 , the Corporation announced the launch of the next-generation karaoke experience with gaming and scoring features for use in the automotive space. Its partner, The Singing Machine Company, Inc., announced the launch of its in-car karaoke microphone with pitch detection exclusively working with Stingray Karaoke scoring features at the 2024 Consumer Electronics Show inLas Vegas fromJanuary 9-12, 2024 . - On
January 5, 2024 , the Corporation announced the expansion of its global deal with BYD, the world’s leading manufacturer of new energy vehicles. Following the successful integration of Stingray Karaoke, BYD will now include the established Calm Radio app in their models sold across dozens of countries. This represents the first time that Calm Radio has been deployed across a leading EV OEM platform, showcasing Stingray’s commitment to revolutionizing the global in-car entertainment landscape with compelling content and features. - On
November 17, 2023 , the Corporation announced the launch of eighteen new channels on Samsung TV Plus, Samsung’s 100% free ad-supported streaming TV and video on-demand (AVOD) service. These channels are now live and available to users in theU.S. on Samsung Smart TVs, Galaxy devices, Smart Monitors, Family Hub refrigerators and on the web. The new audio channels on Samsung TV Plus cater to a broad spectrum of musical tastes and genres. From Hot Country, Remember the 80’s, Nothin’ but 90’s, Flashback 70’s, Smooth Jazz, Easy Listening, The Spa, Today’s K-Pop, Today’s Latin Pop, Romance Latino, Classic Rock, Hip-Hop and Greatest Hits, there’s something for every music lover. This diverse array of channels reflects Stingray’s commitment to delivering a rich and varied music experience to all listeners. - On
November 16, 2023 , the Corporation announced the introduction of its latest TV channel, Stingray Holidayscapes. Now available on LG Smart TVs, the channel promises to enhance the viewing experience for millions of users acrossNorth America . Stingray Holidayscapes sets the perfect ambiance for all at-home activities and gatherings throughout the seasons, transforming everyday moments into memorable experiences. The channel artfully weaves together scenes of vibrant celebrations with holiday-inspired lifestyle videos, creating a distinctive backdrop for every occasion. With a repertoire ranging from heartfelt Valentine’s Day love songs to spookyHalloween pop hits and timeless holiday classics, Stingray Holidayscapes celebrates the spirit of festivity all year round. - On
November 9, 2023 , the Corporation announced the addition of five new FAST channels on Pluto TV now available to audiences inCanada . This expansion highlights Stingray’s commitment to delivering diverse, high-quality content across the country.
Conference Call
The Corporation will hold a conference call tomorrow,
About Stingray
Stingray (TSX: RAY.A; RAY.B), a global music, media, and technology company, is an industry leader in TV broadcasting, streaming, radio, business services, and advertising. Stingray provides an array of music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, over 100 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-car and on-board infotainment content. Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray's goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", and "continue", or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray's control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray's Annual Information Form for the year ended
Non-IFRS Measures
The Corporation believes that Adjusted EBITDA and Adjusted EBITDA margin are important measures when analyzing its operating profitability without being influenced by financing decisions, non-cash items and income taxes strategies. Comparison with peers is also easier as companies rarely have the same capital and financing structure. The Corporation believes that Adjusted Net income and Adjusted Net income per share are important measures as it shows stable results from its operation which allows users of the financial statements to better assess the trend in the profitability of the business. The Corporation believes that Adjusted free cash flow and Adjusted free cash flow per share are important measures when assessing the amount of cash generated after accounting for capital expenditures and non-core charges. It demonstrates cash available to make business acquisitions, pay dividend and reduce debt. The Corporation believes that Net debt and Net debt to Pro Forma Adjusted EBITDA are important to analyse the company's debt repayment capacity on an annualized basis, taking into consideration the annualized adjusted EBITDA of acquisitions made during the last twelve months.
Each of these non-IFRS financial measures is not an earnings or cash flow measure recognized by International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS. This method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.
Reconciliation of Net income to Adjusted EBITDA, Adjusted Net income, LTM Adjusted EBITDA and Pro Forma Adjusted EBITDA
3 months | 9 months | ||||||||
(in thousands of Canadian dollars) | 2023 Q3 2024 | 2022 Q3 2023 | 2023 YTD 2024 | 2022 YTD 2023 | |||||
Net income | 9,070 | 12,944 | 32,577 | 25,672 | |||||
Net finance expense (income) | 15,159 | 7,205 | 25,147 | 23,086 | |||||
Change in fair value of investments | 103 | 68 | 124 | (300 | ) | ||||
Income taxes | 3,186 | 5,037 | 12,391 | 8,787 | |||||
Depreciation and write-off of property and equipment | 2,401 | 1,784 | 7,159 | 7,331 | |||||
Depreciation of right-of-use assets | 1,074 | 1,092 | 3,228 | 3,281 | |||||
Amortization of intangible assets | 4,003 | 4,596 | 13,247 | 14,190 | |||||
Share-based compensation | 121 | 153 | 342 | 454 | |||||
Performance and deferred share unit expense | 2,747 | (238 | ) | 2,130 | (211 | ) | |||
Acquisition, legal, restructuring and other expenses | 784 | 1,809 | 87 | 5,277 | |||||
Adjusted EBITDA | 38,648 | 34,450 | 96,432 | 87,567 | |||||
Adjusted EBITDA margin | 38.5% | 38.6% | 36.8% | 35.7% | |||||
Net income | 9,070 | 12,944 | 32,577 | 25,672 | |||||
Adjusted for: | |||||||||
Unrealized loss (gain) on derivative financial instruments | 5,056 | (1,642 | ) | 821 | 809 | ||||
Amortization of intangible assets | 4,003 | 4,596 | 13,247 | 14,190 | |||||
Change in fair value of investments | 103 | 68 | 124 | (300 | ) | ||||
Share-based compensation | 121 | 153 | 342 | 454 | |||||
Performance and deferred share unit expense | 2,747 | (238 | ) | 2,130 | (211 | ) | |||
Acquisition, legal, restructuring and other expenses | 784 | 1,809 | 87 | 5,277 | |||||
Income taxes related to change in fair value of investments, share-based compensation, performance and deferred share unit expense, amortization of intangible assets, mark-to-market losses (gains) on derivative financial instruments and acquisition, legal, restructuring and other expenses | (3,401 | ) | (1,226 | ) | (4,398 | ) | (5,357 | ) | |
Adjusted Net income | 18,483 | 16,464 | 44,930 | 40,534 | |||||
Average number of shares outstanding (diluted) | 69,068 | 69,678 | 69,282 | 69,872 | |||||
Adjusted Net income per share (diluted) | 0.27 | 0.24 | 0.65 | 0.58 |
(in thousands of Canadian dollars) | 2023 | 2022 | 2023 |
LTM Adjusted EBITDA | 123,005 | 108,590 | 114,140 |
Permanent cost-saving initiatives | 4,459 | 5,074 | 2,325 |
Pro Forma Adjusted EBITDA | 127,464 | 113,664 | 116,465 |
Reconciliation of Cash Flow From Operating Activities to Adjusted Free Cash Flow
3 months | 9 months | ||||||||
(in thousands of Canadian dollars) | 2023 Q3 2024 | 2022 Q3 2023 | 2023 YTD 2024 | 2022 YTD 2023 | |||||
Cash flow from operating activities | 30,902 | 24,605 | 74,263 | 59,397 | |||||
Add / Less : | |||||||||
Acquisition of property and equipment | (1,742 | ) | (1,997 | ) | (5,461 | ) | (5,247 | ) | |
Acquisition of intangible assets other than internally developed intangible assets | (256 | ) | (532 | ) | (876 | ) | (898 | ) | |
Addition to internally developed intangible assets | (1,279 | ) | (1,978 | ) | (3,853 | ) | (4,707 | ) | |
Interest paid | (6,620 | ) | (6,882 | ) | (19,286 | ) | (17,050 | ) | |
Repayment of lease liabilities | (997 | ) | (974 | ) | (3,422 | ) | (3,311 | ) | |
Net change in non-cash operating working capital items | 9,500 | 3,376 | 23,644 | 14,559 | |||||
Unrealized loss on foreign exchange | 2,363 | 658 | 1,594 | 733 | |||||
Acquisition, legal, restructuring and other expenses | 784 | 1,809 | 87 | 5,277 | |||||
Adjusted free cash flow | 32,655 | 18,085 | 66,690 | 48,753 | |||||
Average number of shares outstanding (diluted) | 69,068 | 69,678 | 69,282 | 69,872 | |||||
Adjusted free cash flow per share (diluted) | 0.47 | 0.26 | 0.96 | 0.70 |
Calculation of Net Debt and Net Debt to Pro Forma Adjusted EBITDA Ratio
(in thousands of Canadian dollars) | 2023 | 2022 | 2023 | |||
Credit facilities | 362,902 | 366,168 | 360,990 | |||
Subordinated debt | 25,577 | 25,517 | 25,543 | |||
Cash and cash equivalents | (6,991 | ) | (12,303 | ) | (15,453 | ) |
Net debt | 381,488 | 379,382 | 371,080 | |||
Net debt to Pro Forma Adjusted EBITDA | 2.99 | 3.34 | 3.19 | |||
Note to readers: Consolidated financial statements and Management’s Discussion & Analysis of Operating Results and Financial Position are available on the Corporation’s website at www.stingray.com and on SEDAR at www.sedar.com.
Contact Information Mathieu Péloquin Senior Vice-President,Marketing and Communications Stingray (514) 664-1244, ext. 2362 mpeloquin@stingray.com
Source:
2024 GlobeNewswire, Inc., source