MONTREAL – In its first financial report since becoming a public company, Stingray Digital said that it has started its new fiscal year “on a solid note” despite posting a $1.77 million net loss.
For the first quarter ended June 30, 2015, Stingray said that the loss was due primarily to costs related to the one-time IPO expenses and CRTC tangible benefits, and the related income tax impact. On an adjusted basis, net income increased 33.2% to $4.8 million, up from $3.6 million a year ago, as a result of its recent acquisitions combined with the signing of new international contracts, additional sales for installation and equipment and lower finance expenses.
Revenues of $19.9 million were up 27.3% from $15.6 million year-over-year, which the company credited to acquisitions combined with growth in international markets and the launch of new products. Revenues in its Music Broadcasting segment increased 13.3% to $14.1 million, while Commercial Music revenues jumped 82.2% to $5.8 million.
Adjusted EBITDA for the first quarter of 2016 was $7.2 million or 35.9% of revenues, compared to $5.8 million or 37.3% of revenues a year earlier. The increase was primarily due to the acquisitions in Fiscal 2015, growth in international markets and additional non-recurring revenues related to installation and equipment sales.
“Clearly we have started our new fiscal year on a solid note”, said Stingray president, CEO and co-founder Eric Boyko, in a statement. “The proceeds of the IPO have allowed us to significantly reduce our debt level. This combined with a new revolving credit facility of $100 million provides a solid financial position to pursue our acquisition program.
"Going forward, we will continue to focus on the three main growth drivers which have been the basis for Stingray's success: strategic acquisitions, diversification of our offering, and upselling to our existing clients. We remain confident in our ability to solidify our position as the leading B2B provider of quality music products and services."
A business-to-business multi-platform music and in-store media solutions provider operating on a global scale, Stingray says it reaches an estimated 135 million Pay-TV subscribers (or households) in 127 countries.
