MONTREAL — Broadcaster and commercial music provider Stingray Group Inc. announced yesterday its revenues increased 11.1% to $71.4 million for the second quarter of its 2022 fiscal year, compared to the same quarter a year ago.
Reporting its results for the three months ended Sept. 30, 2021, the company said in a press release the revenue increase “was primarily due to the gradual easing of Covid-19 restrictions, the progressive return to normal commercial operations and to an increase in advertising revenues, partially offset by a negative foreign exchange rate impact.”
Stingray’s adjusted EBITDA for the second quarter of 2022 decreased 17.9% to $25.6 million, compared to Q2 2021, which “was mainly due to lower cost savings and Canada Emergency Wage Subsidies, in addition to increased investments this year to pursue growth,” said Stingray president and CEO Eric Boyko, in the press release.
“Broadcasting and Commercial Music revenues were essentially flat at $39.1 million, with the increase in advertising revenues being offset by foreign exchange headwinds. Adjusted EBITDA for this segment decreased by 23.1% to $14.5 million from $18.9 million due to the higher cost savings and wage subsidies obtained last year compared to more typical expense levels this quarter, having regard for substantial investments made to expand our Stingray Business in the U.S., grow advertising revenues and build Chatter Research’s international customer base.”
Revenue for Stingray’s radio business, which includes more than 100 radio stations, increased 28.6% to $32.3 million in Q2 2022, compared to the same quarter in 2021.
“Although the (radio) business is now approaching pre-pandemic levels, global supply-chain issues are impacting some of our largest advertisers like car dealers, who have no or little inventory available,” Boyko said.
“Adjusted EBITDA for this business decreased 4.5% to $12.5 million from $13.1 million largely due to the temporary measures we had benefited from last year. However, our operating cost base remains well below pre-pandemic levels and offers significant leverage going forward with a return to higher sales volumes.”
Stingray reported it now has 611,000 streaming subscribers, which is a 27% increase over Q2 2021.
“Subscriber growth, combined with enhanced advertising revenues, have supported a robust organic increase of 12.6% in the U.S. for the first half of fiscal 2022,” Boyko said.
Overall, Stingray’s net income in Q2 2022 was $12.1 million, a 1.6% increase compared to the same quarter of 2021. Adjusted net income was essentially unchanged at $16.3 million compared to Q2 2021.
Some of the company’s business highlights for the second quarter of 2022 include the acquisition of Calm Radio in July and the launch of its first bundle with Amazon Prime Video Channels in Canada, Mexico and Brazil in August.
For more on Stingray’s Q2 2022 financial results, please click here.
