Covid drags down Stingray’s radio results, but things are improving
MONTREAL – Broadcaster and commercial music provider Stingray Group today reported third quarter revenue decreased 10.8% to $72.6 million, primarily due to the impact of the Covid-19 pandemic on radio revenues.
Broadcasting and commercial music revenues increased slightly by 0.7% to $40.2 million for the period ended December 31, 2020, compared to the same time frame last year, while radio station revenues decreased 21.8%, “beating the Canadian radio market in most comparable measures,” says the company’s press release.
The company reported operating expenses decreased by 20.7% to $40.6 million while adjusted EBITDA increased 9.5% to $34 million. Adjusted free cash flow decreased 6.6% to $19.6 million.
“We remained highly active during this period marked by the divestiture of a non-core investment yielding proceeds of $18.9 million, the launch of a premium SVOD channel with seven additional partners worldwide, the introduction of FAST channels with 11 partners delivering a potential audience of 200 million, and the successful extension and increase of our credit facilities up to $560 million,” said president and CEO Eric Boyko in the release.
“Adjusted EBITDA increased 47.1% to $21.9 million primarily due to a settlement with SOCAN as well as reduced operating costs partially offset by a special bonus to employees,” he added.
“Third quarter results further revealed the resilience of our radio business, as revenues steadily recovered while comparable year-over-year declines were much less notable despite ongoing headwinds related to the pandemic.”
The company also said it had 515,000 streaming subscribers at the end of December, a 31.4% increase over last year and “a figure that we expect will reach one million in the near-term thanks to new distribution agreements and continued organic growth,” added Boyko in the release.
Stingray owns 101 Canadian radio stations and provides direct-to-consumer and B2B services, including audio television channels, SVOD content, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps, which have been downloaded over 100 million times. Stingray reaches 400 million subscribers (or users) in 156 countries, says the company.
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