Signs new deal with Metro
MONTREAL – Music platform and radio broadcaster Stingray Group say overall second quarter revenues rise by 120.7% to $76.6 million, due largely to last year’s acquisition of Newcap Broadcasting’s chain of radio stations.
That said, noted the company in its release, its recurring broadcasting and commercial music revenues increased 9.4% to $33.5 million for the quarter ended September 30, 2019, as compared to last year’s Q2.
Radio accounted for 49.4% of total revenues at $37.8 million in the quarter and overall organic growth came in at 3%. Subscription video on demand subscribers rose 15.5% to 365,000 compared to last year.
Adjusted EBITDA increased 142.1% to $27.7 million, with a 36.1% margin compared to 32.9% in Q2 2018. Adjusted Net income rose 78.6% to $12 million and cash flow from operating activities increased to $19 million compared to $5.6 million in the second quarter of 2018. Adjusted free cash flow went up 226.1%.
“We are pleased with our second quarter results which continued to build on the significant momentum created by the acquisition of NCC, coupled with the solid growth from the broadcasting and commercial music segment,” said company president and CEO Eric Boyko. “A key measure of our achievement continues to be our adjusted free cash flow which more than tripled to $18.8 million.”
“While the second quarter is a slow period in the radio business, this segment reported solid adjusted EBITDA of $13.7 million with a 36.3% margin. At this stage, most of the operational synergies have been captured. With our increased emphasis on an ad-supported business model and our comprehensive approach to a customer journey, we have far more potential cross-selling opportunities to capitalize on with radio,” he added.
Boyko also sang the praises of the recently launched Audio360 partnership with Bell Media, which counts 22 million unique weekly listeners through digital audio and podcasts, TV and radio.
“Also during the quarter, we made the Stingray Music free mobile app accessible to everyone in Canada, the U.S, the U.K. and the Netherlands will bring new listeners and visibility to the Stingray brand,” added Boyko.
The company also announced today a long-term agreement with Metro Inc., where Stingray will be the music provider in all of its stores, which include the banners Metro, Metro Plus, Super C, Food Basics, Adonis, Les 5 Saisons, Brunet, and Jean Coutu.
“While the global music industry is in consistent evolution, Stingray has clearly demonstrated its ability to rapidly adapt and capitalize on changes. Our vision remains to unleash the power of music by delivering the best curated video and audio experiences for people and businesses globally,” Boyko added.
