MONTREAL – Acquisitions and international growth helped to drive up second quarter revenues and profits at Stingray Digital Group, the company said Thursday.
For the second quarter ended September 30, 2015, Stingray posted revenues of $21.3 million, up 24.0% from $17.2 million in revenues a year ago, primarily due to acquisitions, 50% growth in international markets, and a favorable exchange rate with the US dollar.
Recurring revenues of $18.8 million remained relatively stable in percentage of total revenues at 88%, and increased 20.3% over the same period last year. International revenues now represent 38.5% of total revenues, up from 31.8% year-over-year.
Music broadcasting saw an increase of 19.5% in revenues to $15.6 million, mainly due to the acquisitions of Brava and Telefonica On the Spot and the signing of new customer contracts, while commercial music revenues increased 38.2% to $5.7 million, mainly as a result of the acquisition of Les Réseaux Urbains Viva Inc. and the signing of new customer contracts, as well as non-recurring revenues from installation and equipment sales.
Profits of $9.2 million skyrocketed 326.5% from $2.2 million in the same period in 2014, which the company attributed to the change in the fair value of an investment, the increase in operating results and lower financing costs related to the debt repayment with the IPO, partially offset by higher income taxes. Adjusted net income increased 34.5% to $6.2 million from $4.6 million year-over-year due to the successful integration of acquisitions, signing of new international contracts, additional sales from installation and equipment, and lower finance expenses related with the debt repayment with the IPO.
Adjusted EBITDA for the period was $7.6 million or 35.8% of revenues, compared to $6.7 million or 39.2% of revenues a year earlier.
"We are pleased with our second quarter results, which reached record levels on several fronts,” said Stingray president, CEO and co-founder Eric Boyko, in a statement. “International revenues represented 39% of total revenues, an increase of 50% over last year. Adjusted free cash flow, a solid indicator of the strength of our business model, increased to $6.4 million or by 36%. We are actively working on our acquisition pipeline and benefit from a solid financial position to continue to execute our business model.”
