Stingray Reports Second Quarter Results for Fiscal 2025
Organic growth of 15.6% year-over-year in Broadcast and Recurring Commercial Music Revenues largely driven by FAST channel sales;
Revenues increased 13.4% to $93.6 million in the second quarter of fiscal 2025 from $82.5 million in the second quarter of 2024;
Adjusted EBITDA(1) grew 15.2% to $34.0 million in the second quarter of 2025 from $29.5 million in the second quarter of 2024. Adjusted EBITDA by segment was $25.0 million or 41.0% of revenues for Broadcasting and Commercial Music, $11.0 million or 33.7% of revenues for Radio, and $(2.0) million for Corporate;
Net income decreased to $5.8 million, or $0.08 per share, in the second quarter of 2025 from $9.4 million, or $0.14 per share, in the second quarter of 2024;
Adjusted Net income(1) improved to $16.7 million, or $0.24 per share, in the second quarter of 2025 from $14.6 million, or $0.21 per share, in the same period of 2024;
Cash flow from operating activities totaled $19.2 million, or $0.28 per share, in the second quarter of 2025 compared to $19.1 million, or $0.28 per share, in the second quarter of 2024;
Adjusted free cash flow(1) reached $21.1 million, or $0.31 per share, in the second quarter of 2025 compared to $14.6 million, or $0.21 per share, in the same period of 2024;
Net debt to Pro Forma Adjusted EBITDA(1) ratio attained 2.72x in the second quarter of 2025 compared to 3.19x in the second quarter of 2024; and
Repurchased and cancelled 333,400 shares for a total of $2.5 million in the second quarter of 2025 compared to 119,800 shares for a total of $0.6 million in the second quarter of 2024.
MONTREAL, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Stingray Group Inc. (TSX:RAY, RAY.B)) (the "Corporation"; "Stingray"), an industry leader in music and video content distribution, business services, and advertising solutions, announced today its financial results for the second quarter of fiscal 2025 ended September 30, 2024.
Financial Highlights(in thousands of Canadian dollars, except per share data)
Three months endedSeptember 30
Six months ended September 30
2025
2024
%
2025
2024
%
Revenues
93,585
82,493
13.4
182,655
161,485
13.1
Adjusted EBITDA(1)
33,994
29,518
15.2
65,064
57,784
12.6
Net income
5,813
9,389
(38.1
)
13,108
23,507
(44.2
)
Per share, diluted ($)
0.08
0.14
(42.9
)
0.19
0.34
(44.1
)
Adjusted Net income(1)
16,729
14,554
14.9
30,662
26,447
15.9
Per share, diluted ($)
0.24
0.21
14.3
0.44
0.38
15.8
Cash flow from operating activities
19,183
19,101
0.4
29,933
43,361
(31.0
)
Adjusted free cash flow(1), (2)
21,103
14,567
44.9
36,565
33,024
10.7
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.
2)
Non-material adjustments were made to Adjusted free cash flow in comparable periods due to the double counting of an element in initial calculations.
Reporting on second quarter results for fiscal 2025, Stingray's President, co-founder and CEO Eric Boyko stated:
"Stingray's FAST channel and retail media segments continued to drive growth in the second quarter of fiscal 2025, raising advertising revenues by 66% year-over-year. A pilot project with Vizio on the FAST channel side, combined with increased penetration with other TV manufacturers, largely contributed to the significant revenue growth. We also benefited from digital equipment installations at new accounts across our North American advertising platform to bolster revenues. On the retail media front, key customer wins at Sobeys, Shoppers Drug Mart and Mondou within our Canadian network should deliver meaningful revenue contributions in the second half of the fiscal year and beyond."
"Moving on to our in-car entertainment business, we recently launched Stingray Karaoke in Ford Motor Company vehicles, beginning with the all-electric F-150 Lightning and Mustang Mach-E, while further deployments are expected across the Ford and Lincoln fleet. We also secured a similar agreement with NIO for its smart electric vehicles across European countries and expanded our footprint at BYD with an updated version of our Karaoke app. In addition, we created a whole new revenue stream within the in-car entertainment space through a partnership with Xperi/TiVo by introducing eight new channels on video screens for backseat passengers of BMW Group vehicles. This premium video offering will be extended to other luxury car manufacturers in upcoming quarters as we position Stingray as a supplier of choice in this market."
"Altogether, revenues for our Broadcasting and Commercial Music business increased 22.2% to $60.9 million in the second quarter of 2025, while Radio revenues remained stable year-over-year at $32.7 million as we kept outpacing industry peers."
"Notwithstanding these positive data points, we achieved organic growth (excluding Radio) of 15.6% in the second quarter, marking four consecutive reporting periods in which Stingray has generated robust revenue increases year-over-year. This string of strong organic results, in turn, has provided an enhanced degree of predictability to our profitability, including maintaining a consolidated Adjusted EBITDA margin of approximately 35%." Mr. Boyko concluded.
Second Quarter ResultsRevenues increased $11.1 million, or 13.4%, to $93.6 million in Q2 2025 from $82.5 million in Q2 2024. The year-over-year growth was mainly due to an increase in FAST channel sales as well as higher equipment and installation sales related to digital signage.
For the quarter, revenues in Canada rose $0.5 million, or 1.1%, to $48.9 million from $48.4 million in Q2 2024. The growth reflects enhanced equipment and installation sales related to digital signage, partially offset by a decrease in audio channel revenues.
Revenues in the United States grew $11.3 million, or 52.5%, to $32.9 million in Q2 2025 from $21.6 million in Q2 2024. The increase can largely be attributed to higher FAST channel revenues, along with enhanced equipment and installation sales related to digital signage.
Revenues in Other countries decreased $0.7 million, or 5.9%, to $11.8 million in Q2 2025 from $12.5 million in Q2 2024. The decline was mainly due to reduced business-to-consumer (B2C) subscriptions and less audio channel revenues.
Broadcasting and Commercial Music revenues increased $11.1 million, or 22.2%, to $60.9 million in Q2 2025 from $49.8 million in Q2 2024. The growth was primarily driven by higher FAST channel revenues and greater equipment and installation sales related to digital signage. Radio revenues remained stable year-over-year at $32.7 million in Q2 2025 as higher digital advertising sales were offset by slightly lower national airtime revenues.
Consolidated Adjusted EBITDA(1) improved $4.5 million, or 15.2%, to $34.0 million in Q2 2025 from $29.5 million in Q2 2024. Adjusted EBITDA margin(1) reached 36.3% in Q2 2025 compared to 35.8% in the same period in 2024. The growth in Adjusted EBITDA(1) and Adjusted EBITDA margin(1) was mainly due to higher revenues.
Net income totaled $5.8 million, or $0.08 per share, in Q2 2025 compared to $9.4 million, or $0.14 per share, in Q2 2024. The decrease was mainly caused by a loss in the fair value of derivative financial instruments and to a negative foreign exchange impact, partially offset by higher operating results.
Adjusted net income(1) reached $16.7 million, or $0.24 per share, in Q2 2025 compared to $14.6 million, or $0.21 per share, in the same period of 2024. The increase can primarily be attributed to better operating results, partially offset by a foreign exchange loss.
Cash flow generated from operating activities totaled $19.2 million in Q2 2025 compared to $19.1 million in Q2 2024. The year-over-year improvement was mainly due to better operating results, largely offset by a foreign exchange loss and a higher negative change in non-cash operating items. Adjusted free cash flow(1),(2) amounted to $21.1 million in Q2 2025 compared to $14.6 million in the same period of 2024. The increase was mainly due to higher operating results.
As at September 30, 2024, the Corporation had cash and cash equivalents of $8.6 million, subordinated debt of $25.6 million and credit facilities of $350.5 million, of which approximately $68.0 million was available. The Net Debt to Pro Forma Adjusted EBITDA ratio(1) stood at 2.72x as at September 30, 2024 compared to 3.19x as at September 30, 2023.
Declaration of DividendOn November 5, 2024, the Corporation declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share and multiple voting share. The dividend will be payable on or around December 13, 2024 to shareholders on record as of November 29, 2024.
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 (Canada) and any corresponding provisions of provincial and territorial tax legislation.
Business Highlights and Subsequent Events
On October 21, 2024, the Corporation announced the launch of eight new video channels, Stingray Naturescape, Stingray Holidayscapes, ZenLIFE by Stingray, Qello Concerts by Stingray, Stingray Classica, Stingray CMusic, Stingray DJAZZ, and Ultimate Trivia by Stingray, on the DTS AutoStage Video Service Powered by TiVo. This strategic expansion is set to transform in-car entertainment by offering a diverse array of premium content to a wide range of vehicles in the current product portfolio of the BMW Group, providing a cohesive and comprehensive solution that caters to the evolving needs of modern car owners, drivers, and passengers.
On October 1, 2024, the Corporation announced the launch of the Stingray Karaoke app on VIZIO. Starting today, karaoke fans can access an extensive library of over 100,000 licensed songs directly through the Stingray Karaoke app available on millions of VIZIO Smart TVs.
On September 25, 2024, the Corporation announced that the Toronto Stock Exchange ("TSX") has approved the renewal of its normal course issuer bid ("NCIB"), authorizing Stingray to repurchase up to an aggregate 3,542,716 subordinate voting shares and variable subordinate voting shares (collectively, "Subordinate Shares"), representing approximately 10% of the "public float" (as defined in the TSX Company Manual) of Subordinate Shares as at September 13, 2024.
On September 19, 2024, the Corporation announced the launch of two new free ad-supported TV channels, Stingray Naturescape and ZenLIFE, on Amazon Fire TV Channels. These channels are designed to bring tranquility and wellness into the homes of viewers worldwide, with additional videos also available on ad-supported video on demand (AVOD) on the platform.
On September 17, 2024, the Corporation announced the launch of Stingray Karaoke in Ford Motor Company's vehicles. Starting with the all-electric F-150® Lightning® and Mustang Mach-E and coming soon to vehicles with the Ford and Lincoln Digital Experience. This will be the first time karaoke is available for Ford owners to use and enjoy inside the vehicle while parked and on the go.
On September 16, 2024, the Corporation announced the launch of Stingray Karaoke in NIO's smart electric vehicles across European territories. This exciting new feature will be available in all NIO cars sold in Europe over the next two years, with each vehicle enjoying three years of complimentary karaoke service.
On July 17, 2024, the Corporation announced the launch of two free ad-supported TV channels, Qello Concerts by Stingray and ZenLIFE by Stingray, on Amazon Freevee.
On July 9, 2024, the Corporation announced the acquisition of The Coda Collection, a premier music-focused streaming platform. This strategic move solidifies Stingray's position as the leading provider of concert streaming on the world's most popular platforms.
Conference CallThe Corporation will hold a conference call tomorrow, November 6, 2024, at 10:00 AM (ET), to review its financial results. Interested parties can join the call by dialing 289-514-5100 (Toronto) or 1-800-717-1738 (toll free). A rebroadcast of the conference call will be available until midnight, December 6, 2024, by dialing 289-819-1325 or 1-888-660-6264 and entering passcode 77780.
About StingrayStingray (TSX:RAY, 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 global 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 ...
