MONTREAL – Acquisitions and international growth boosted third quarter revenues and profits at Stingray Digital Group, the company said Thursday.
For the third quarter ended December 31, 2015, Stingray posted revenues of $23.1 million, up 24.6% from $18.5 million in revenues a year ago, primarily due to acquisitions combined with growth in international markets, including a new contract with AT&T in the US, additional sales from installation and equipment, and a favorable exchange rate with the US dollar.
Recurring revenues were up 20.0% to $19.7 million over the same period last year and decreased slightly as a percentage of total revenues to 85%. International revenues posted solid growth and represented 40.4% of total revenues, up from 34.5% last year.
Music Broadcasting revenues increased 22.4% to $17.0 million, mainly due to the acquisitions of Digital Media Distribution Pty Ltd. ("DMD") and iConcerts that occurred in December 2015, as well as the impact of the Brava acquisition. Commercial Music revenues rose 31.1% to $6.1 million, mainly as a result of the acquisition of Les Réseaux Urbains Viva Inc. and new customer contracts.
Profits of $3.2 million jumped 111.4% from $1.5 million in the same period in 2014, which the company attributed to stronger operating results and lower financing costs, offset by higher income taxes. Adjusted net income increased 41.5% to $6.2 million year-over-year due to recent acquisitions combined with international growth, additional sales from installation and equipment and lower finance expenses, partially offset by higher income tax expenses.
Adjusted EBITDA for the period was was $8.0 million or 34.7% of revenues, compared to $7.0 million or 37.7% of revenues a year earlier.
"For the third quarter, we continued to deliver on our ambitious business plan since going public with solid results across the board," said Stingray president, CEO and co-founder Eric Boyko, in a statement. “Reflecting confidence in our financial situation and business outlook, the Board made the decision to raise the quarterly dividend by 17% to $0.035 per share.
"In summary, recent acquisitions allow us to expand our geographic reach and to further cross-leverage our growing and extensive portfolio of music, video and concert content, one of the largest in the world. This provides us with critical economies of scale to our business model and a solid competitive position.”
