MONTREAL – Music service provider and broadcaster Stingray saw first quarter revenues increase 133.4% to $80.4 million, compared with Q1 2018.
The increase was primarily due the acquisition of radio broadcaster Newfoundland Capital Corporation, combined with the acquisition of DJ Matic and Novramedia and organic growth in subscription video-on-demand, partially offset by a delay to implement an ad sales model included in the renewal of a contract in fiscal 2019 and by a decrease in equipment and installation sales related to digital signage, said the company press release.
Recurring broadcasting and commercial music revenues were up 10.3% to $34 million in the first quarter, ended June 30, 2019, over the same period last year.
For the quarter, revenues in Canada increased 311.3% to $56.1 million (69.7% of total revenues) primarily due to the acquisition of NCC and Novramedia. Revenues in the United States increased 11.7% to $9.1 million (11.4% of total revenues) and in other countries, revenues increased by 20.3% to $15.2 million (18.9% of total revenues).
Adjusted EBITDA for the first quarter increased to $31.2 million, compared to $11.2 million a year earlier. For quarter, Stingray reported a net income of $9.2 million, compared to $1.3 million in Q1 2018.
Cash flow generated from operating activities increased to $26.3 million in the first quarter of 2019 from $7.2 million a year earlier. Adjusted free cash flow increased to $20.6 million, from $6.3 million for the first quarter of 2018.
“We are thrilled by our first quarter results with several key financial metrics achieving record levels. Most noteworthy is our adjusted free cash flow of $20.6 million, up by a robust 229% over last year,” said Eric Boyko, president and CEO, in the press release.
“Our acquisition thesis for NCC was largely supported by its capacity to generate solid free cash flow and this quarter’s results underline that potential. Broadcast and commercial music also performed very well with a significant improvement in the adjusted EBITDA margin.”
In the radio segment, the company said it surpassed initially expected operational synergies and that it is also gaining market share momentum in “certain key markets.” Finally, it has made a push into digital advertising, extending its reach beyond the traditional and mature radio market.
