MONTREAL — Broadcaster and music service provider Stingray Group Inc. yesterday reported its financial results for its 2022 fiscal year, which showed 21.6% revenue growth in the fourth quarter ended March 31, 2022, and 14% revenue growth for the full year, compared to the same periods a year prior.
Specifically, Stingray’s revenue increased to $72.6 million in Q4 2022 compared to $59.7 million in Q4 2021, and its full-year revenue grew to $282.6 million in 2022 from $247.9 million in fiscal 2021.
For the fourth quarter, Stingray’s adjusted EBITDA decreased 11.1% to $21 million from $23.6 million in the same quarter of 2021. Net income for Q4 2022 fell to $4.5 million, a 63% decrease compared to the $12.1 million in net income the company reported for Q4 2021.
Stingray’s full-year 2022 results show its adjusted EBITDA decreased 13.1% to $99.3 million, compared to $114.3 million in its 2021 fiscal year. Net income for fiscal 2022 was $33.3 million, a 26.2% year-over-year drop from $45.1 million in net income in fiscal 2021.
“We are encouraged by our fiscal 2022 results with revenues increasing 14.0% to $282.6 million, reflecting a return to normal business activities post-pandemic and the InStore Audio Network acquisition,” said Eric Boyko, Stingray president, co-founder and CEO, in a press release announcing the company’s financial results.
“Although adjusted EBITDA declined 13.1% compared to 2021, when contributions from the Canadian Emergency Wage Subsidy (CEWS) program are excluded, Adjusted EBITDA actually increased. We also continued investing in high-growth areas, notably in Retail Media,” he said.
“In the fourth quarter of 2022, our revenues improved 21.6% to $72.6 million largely due to the same factors impacting full-year results, along with an increase in equipment and installation sales related to digital signage. Adjusted EBITDA in the fourth quarter declined 11.1% mainly due to lower CEWS and higher operating costs related to a return to normal commercial operations.”
Looking at the company’s broadcasting and commercial music business for the full year, “revenue grew 6.0% in 2022, driven by the Calm Radio and InStore Audio Network acquisitions,” Boyko added. “The Retail Media segment holds much promise for fiscal 2023 based on growing demand for highly customizable audio ads within Retail Media and recent partnerships announced with Walmart Canada and Metro Inc.”
In addition, free ad-supported TV (FAST) represents “another key growth vehicle” for Stingray’s broadcasting and commercial music segment, according to Boyko.
“During the fourth quarter, we launched 17 FAST channels on the streaming platform Galxy TV in Canada and the United States. Likewise, we announced a FAST channel distribution agreement with TCL Electronics for its smart TVs in Australia, Brazil, India, Mexico and the United States after the year-end… As a result, we’re targeting strong revenue opportunities in FAST channels as TV viewing habits evolve,” Boyko said.
“During the past year, the Radio segment continued its recovery, despite softness in some traditional end-markets that have not fully resumed advertising spending. Our radio network performed relatively well in local markets with growth in digital radio providing incremental revenue. As a result, radio revenues improved 26.3% year-over-year. We are pleased by the overall performance of our Radio business, in particular the strong cash flow it generates.”
For more on Stingray’s Q4 and full-year 2022 financial results, please click here.
