Key Financial Data
- All figures in Canadian $
- Q2 Total revenue: $171.4 million (+51.3% year-over)
- Net income: $16.2 million (+37.7%)
- Net profit margin: 9.5% (down from 10.4%)
- Operating income, before acquisition and restructuring costs: $38.4 million (+37.8%)
- Operating income, after acquisition and restructuring costs: $24.9 million (-0.6%)
- Operating expenses: $117.6 million (+50.6%)
- Broadcasting and Commercial Music revenue: $137.3 million (+69.8%)
- Radio revenue: $34.1 million (+5.3%)
- Canada revenue: $50.4 million (-2.1%)
- United States revenue: $109 million (+109.9%)
- Other countries revenue: $12 million (+21.7%)
- Corporate operating expenses: $4.5 million (+8.3%)
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Broadcaster and connected audio company Stingray reported a sharp increase in quarterly revenue and profit this week as the company’s acquisition of U.S.-based streaming platform TuneIn began to pay off.
Revenue earned by the Canada-based company climbed to C$171.4 million (around U.S. $120.9 million) during the company’s fiscal second quarter ending September 30, an increase of 51.3 percent from C$113.3 million (U.S. $79.9 million) during the same period last year.
Net income rose 37.7 percent to C$16.2 million (around U.S. $11.4 million), while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 47.5 percent to C$58.3 million (U.S. $41.1 million).
Stingray attributed much of its quarterly gains to advertising revenue associated with TuneIn and stronger sales across its slate of free, ad-supported streaming TV (FAST) channels, including its “Moodscapes” feeds. FAST channel revenue increased more than 85 percent, while advertising revenue across TuneIn, FAST channels and retail media more than doubled, executives said in a report.
Stingray President and CEO Eric Boyko said the company’s integration of TuneIn has already produced annualized revenue synergies of C$45 million (nearly U.S. $31.7 million) and cost savings of C$12 million (U.S. $8.5 million), exceeding internal expectations.
“We believe there are further opportunities to optimize our synergies both in terms of revenues and costs moving forward,” Boyko said.
Stingray has also expanded its connected television advertising business, recently securing the rights to sell Samsung’s unsold advertising inventory. Samsung becomes the third major television manufacturer participating in Stingray’s Premium Ad Network.
The company expanded FAST distribution internationally during the quarter, launching 20 channels across 13 European countries on LG Smart TVs and 17 channels across nine countries on Rakuten TV. Additional channels were introduced through LG Channels in the United Arab Emirates during the quarter.
Stingray is also expanding its automotive entertainment business through partnerships with Ford, Lincoln and Stellantis, bringing music channels, radio stations and podcasts to vehicle entertainment systems, as previously reported by The Desk.
Stingray’s traditional radio business in Canada also recorded growth, with revenue increasing 5.3 percent to C$34.1 million (around U.S. $24 million). Stingray attributed the improvement to higher national advertising and digital revenue.
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