MONTREAL – Stingray Digital Group credited strong growth from its international business for a 110.1% jump in profits in its first fiscal year as a public company.
For the fiscal year ended March 31, 2016, Stingray reported revenues of $89.9 million, up 26.7% year-over-year primarily due to acquisitions combined with growth in international markets and non-recurring revenues related to installation and equipment sales. In addition, revenues were favourably impacted by the exchange rate between the Canadian dollar and the US dollar.
Net income increased to a record $13.9 million in Fiscal 2016 from $6.6 million last year, and as a result, adjusted net income rose 36.3% to $24.3 million compared to $17.8 million a year ago, the company reported Thursday.
Adjusted EBITDA grew 13.7% to $31.0 million from $27.3 million year-over-year due to the acquisitions of Brava, DMD and iConcerts, as well as organic growth in international markets.
For the fourth quarter, Stingray saw revenues increase 30.6% to $25.7 million, net income grow 68.9% to $3.2 million, adjusted EBITDA rise 6.3% to $8.2 million, and adjusted free cash flow of $6.3 million, an increase of 17.4%.
President, CEO and co-founder Eric Boyko called acquisitions an “integral part” of Stingray’s business model and noted that the company has identified “many other future opportunities”.
“As planned, we have been active on the acquisition front with four acquisitions representing investments of $33.1 million including contingent considerations”, he said in the news release accompanying the financial results. “However, it’s important to highlight the contribution of organic growth on a consolidated basis from our international market segment supported by new products and cross-selling opportunities related to acquisitions.”
