MONTREAL – Music provider and radio broadcaster Stingray announced Thursday fourth quarter revenues decreased 6% to $68.4 million, compared to the same quarter of last year primarily due to the initial impact of the Covid-19 pandemic on its radio revenues.
Broadcasting and commercial music revenues decreased 0.6% and radio revenues decreased 12.0%. That said, adjusted EBITDA increased 25.9% to $28.2 million and cash flow from operating activities decreased 22.2% to $14.1 million. Adjusted free cash flow increased 82.6% to $18 million
For the full year, revenues increased 44.2% to $306.7 million and adjusted EBITDA increased 63.5% to $118.1 million. Cash flow from operating activities increased 97.2% to $88.1 million, much of it thanks to the full year results of 2018 acquisition Newcap Radio.
“Our fourth quarter results reflect some impact of Covid-19. The radio segment was partially hit during the quarter and revenues continued to decline in April and to a lesser extent in May. Considering the initial impact of Covid-19 on radio revenues, we are pleased with our consolidated fourth quarter results as adjusted EBITDA increased 25.9% to $28.2 million,” said Eric Boyko, president and CEO of Stingray in the company press release.
“At the very early start of the COVID-19 crisis, we decided to act quickly and aggressively with the implementation of significant cost saving initiatives to maintain our solid financial position. We cut our operating expenses by tens of millions, of which part will be permanent. This bold move was motivated by our determination to maintain a high level of free cash flow.”
For its full results, please click here.
