MONTREAL – Fiscal 2021 revenue decreased 18.7% to $249.5 million, primarily due to the impact of the Covid-19 pandemic on radio revenues, broadcaster and commercial music supplier Stingray Group said late Wednesday.
Adjusted EBITDA for fiscal 2021, ended March 31st, decreased $3.8 million or 3.2% to $114.3 million and adjusted EBITDA margin was 45.8% compared to 38.5% for fiscal 2020.
Net income for fiscal 2021, however, was $45.1 million, compared to $14 million for the prior year. The increase “was mainly related to a mark-to-market gain on derivative instruments, to lower legal expenses and to a foreign exchange gain, partially offset by higher income taxes, by a negative change in fair value of investments following the sale of securities held in AppDirect Inc., by higher performance and deferred share unit expense and by lower operating results,” reads the release.
The company said in its release it is poised to ride a post-Covid rebound in fiscal 2022 as Q4 results showed the pandemic was easing and the company recorded organic growth in its broadcast (which doesn’t include radio) and recurring commercial music revenues.
Plus, its operating expenses materially decreased 25.2% to $142.5 million.
“We had a very solid year considering the context of the past months,” said president and CEO Eric Boyko in the press release. “We delivered results which surpassed our expectations, reduced our net debt by close to $35 million, maintained $22 million in dividend payments and repurchased $10 million in shares.
“We also invested in the Stingray Business in the U.S., laying the foundation for future growth, and continued to build on solid traction in SVOD and FAST channels.”
“We concluded the year with more than half a million streaming subscribers. We expect solid incremental organic gains in fiscal 2022 and remain on track to reach one million subscribers,” he added.
“We move into 2022 with leaner and more agile operations, significant growth opportunities, a solid financial position and fully prepared to take advantage of the expected recovery in radio. Adopting a more offensive stance, our capital allocation strategy will shift towards acquisitions and the repurchasing of shares,” he concluded.
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