SVOD revenues up 21.1% over last quarter
| Source: Stingray Group Inc.
Fourth Quarter Highlights
- Revenues increased 112.5% to $72.7 million
- Recurring Broadcasting and Commercial Music revenues(1) of $34.5 million, an increase of 12.4%
- Radio accounted for 46.8% of total revenues at $34.0 million
- Overall organic growth of 4.6%, excluding non-recurring equipment and installation sales related to digital signage
- Subscription video on demand (“SVOD”) reached 364,000 subscribers, with revenues at $10.2 million, up 21.1% over last quarter
- Adjusted EBITDA(2) up 90.7% to $22.4 million
- Net income of $3.9 million or $0.06 per share (diluted) compared to a net income of $4.7 million or $0.08 per share (diluted)
- Adjusted Net income(3) up 28.8% to $12.5 million or $0.18 per share (diluted)
- Cash flow from operating activities increased to $13.6 million compared to $10.7 million
- Adjusted Free cash flow(4) of $10.5 million, a decrease of 4.9% due, in large part, to income taxes payable included in the opening balance sheet of Newfoundland Capital Corporation Inc. (“NCC”) paid after the acquisition date. Excluding this item, Adjusted Free cash flow(4) would have reached $14.1 million.
- Quarterly dividend of $0.065 per share
- Subsequent to the quarter, entered into an agreement to acquire the assets of two radio stations located in Welland, Ontario, subject to the Canadian Radio-television and Telecommunications Commission (“CRTC”) approval.
Said Eric Boyko, President, CEO, and Co-Founder of Stingray, “For the fourth quarter, revenues and Adjusted EBITDA increased 112.5% to $72.7 million and 90.7% to $22.4 million, respectively. We are pleased by our results as this solid execution is clearly leading us towards a new growth phase. These results reflect the solid contribution of NCC, acquisitions in the Broadcasting and Commercial Music segment and organic growth of close to 5%, driven by B2C apps and SVOD.”
“The initial NCC operational synergies are now on a full run-rate basis and therefore will have a full impact on Q1 2020 results. Market conditions in the Canadian radio industry have remained somewhat soft but our strong portfolio of radio stations has been clearly outperforming the industry. More recently, we have observed some traction at the local advertising level considering our various marketing initiatives and customers’ better understanding of our commitment to the industry.”
