Fourth Quarter Highlights
- Organic growth of 9.4% year-over-year in Broadcast and Recurring Commercial Music Revenues;
- Revenues improved 6.0% to
$83.7 million from$78.9 million ; - Strong performance of the Radio Division with a revenue growth of 4.7% compared to last year, outperforming peers in the Canadian market;
- Adjusted EBITDA(1) increased 10.7% to
$29.4 million from$26.6 million . Adjusted EBITDA(1) by segment was$22.7 million , or 42.5% of revenues, for Broadcasting and Commercial Music,$8 .2 million, or 27.1% of revenues, for Radio and $(1.5) million for Corporate; - Net loss totaled
$46.3 million due to a one-time non-cash impairment of$56.1 million of the goodwill related to the Radio segment ($0.67 per share) compared to Net income of$4.4 million ($0.06 per share); - Adjusted Net income(1) rose to
$15.4 million ($0.22 per share) from$14.7 million ($0.21 per share); - Cash flow from operating activities grew 60.7% to
$44.3 million ($0.64 per share(1)) from$27.6 million ($0 .40 per share(1)); - Adjusted free cash flow(1) increased 2.4% to
$15.3 million ($0.22 per share) from$14.9 million ($0.21 per share); - Net debt to Pro Forma Adjusted EBITDA(1) ratio of 2.76x compared to 3.19x last year;
- 784,423 streaming subscribers, down 3.9% over Q4 2023; and
- Repurchased and cancelled 57,600 shares for a total of
$0.4 million compared to 53,300 shares for a total of$0 .3 million.
Full Year Highlights
- Organic growth of 10.2% year-over-year in Broadcast and Recurring Commercial Music Revenues;
- Revenues increased 6.6% to
$345.4 million from$323.9 million ; - Adjusted EBITDA(1) improved 10.3% to
$125.9 million from$114.1 million . Adjusted EBITDA(1) by segment was$90 .5 million, or 41.9% of revenues, for Broadcasting and Commercial Music,$41 .5 million, or 32.0% of revenues, for Radio and $(6.1) million for Corporate; - Net loss totaled
$13.7 million due to a one-time non-cash impairment of$56.1 million of the goodwill related to the Radio segment ($0.20 per share) compared to Net income of$30.1 million ($0.43 per share); - Adjusted Net income(1) increased to
$60.3 million ($0.87 per share) from$55.2 million ($0.79 per share); - Cash flow from operating activities grew 36.3% to
$118.5 million ($1.72 per share(1)) from$86.9 million ($1 .25 per share(1)); - Adjusted free cash flow(1) rose 28.7% to
$82.0 million ($1.18 per share) from$63.7 million ($0.90 per share); and - Shares repurchased and cancelled of 557,500 for a total of
$2.9 million compared to 786,100 shares for a total of$4 .4 million.
Financial Highlights (in thousands of Canadian dollars, except per share data) | Three months ended | Twelve months ended | ||||||||
2024 | 2023 | % | 2024 | 2023 | % | |||||
Revenues | 83,665 | 78,931 | 6.0 | 345,428 | 323,944 | 6.6 | ||||
Adjusted EBITDA(1) | 29,423 | 26,573 | 10.7 | 125,855 | 114,140 | 10.3 | ||||
Net income (loss) | (46,318 | ) | 4,447 | (1,141.6 | ) | (13,741 | ) | 30,119 | (145.6 | ) |
Per share – diluted ($) | (0.67 | ) | 0.06 | (1,216.7 | ) | (0.20 | ) | 0.43 | (146.5 | ) |
Adjusted Net income(1) | 15,382 | 14,668 | 4.9 | 60,312 | 55,202 | 9.3 | ||||
Per share – diluted ($)(1) | 0.22 | 0.21 | 4.8 | 0.87 | 0.79 | 10.1 | ||||
Cash flow from operating activities | 44,263 | 27,552 | 60.7 | 118,526 | 86,949 | 36.3 | ||||
Adjusted free cash flow(1) | 15,270 | 14,909 | 2.4 | 81,960 | 63,662 | 28.7 |
(1) This is a non-IFRS measure and is not a standardized financial measure. The Corporation’s method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, the definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Refer to “Non-IFRS Measures” on page 5 of this news release for more information about each non-IFRS measure and refer to pages 6-7 for the reconciliations to the most directly comparable IFRS financial measures.
Reporting on Stingray’s fiscal 2024 and fourth quarter results, President, Co-Founder and CEO
“We took giant strides to establish ourselves as a leader in retail media advertising, FAST channels and in-car audio entertainment during the past fiscal year, leading to robust Adjusted EBITDA of
“Broadcasting and Commercial Music revenues increased 10.7% to
“In terms of our financial position, we reduced our debt level in a high interest rate environment, closing the fiscal year with a Net Debt to Pro Forma Adjusted EBITDA ratio of 2.76. We plan to further lower our leverage ratio to a sweet spot closer to 2.0-2.5 times in Fiscal 2025, which will provide us with the flexibility to invest in organic and acquisition-related growth”
“Looking ahead to fiscal 2025, we will continue evangelizing the retail media advertising sector, while growing our footprint and fill rate. We also expect further growth from our FAST channel business, now supported by a quarterly run-rate of more than 40 million listening hours. In addition, we are optimistic about our in-car audio entertainment segment with four global manufacturers under contract combined with a strong pipeline ahead. Turning to our Radio segment, we should continue outperforming the industry by remaining relatively flat year-over-year. Given these growth opportunities and a stable cost base, we intend to maintain our Adjusted EBITDA margin objective or slightly improve it for 2025,”
Fourth Quarter Results
Revenues in the fourth quarter increased
Revenues in
Revenues in
Revenues in Other countries decreased
Broadcasting and Commercial Music revenues in the fourth quarter of 2024 increased
For the fourth quarter of 2024, Radio revenues grew
For the fourth quarter of 2024, net loss totaled
Consolidated Adjusted EBITDA in the fourth quarter of 2024 increased
Cash flow generated from operating activities amounted to
As of
Full Year Results
Fiscal 2024 revenues increased
Net loss in fiscal 2024 totaled
Adjusted EBITDA in fiscal 2024 improved
Adjusted net income in fiscal 2024 amounted to
Declaration of Dividend
The Corporation declared a dividend of
The Corporation’s dividend policy is at the discretion of the Board of Directors and may vary depending upon, among other things, our available cash flow, results of operations, financial condition, business growth opportunities and other factors that the Board of Directors may deem relevant.
The dividends paid are designated as "eligible" dividends for the purposes of the Income Tax Act (
Business Highlights and Subsequent Events
- On
May 2, 2024 , the Corporation announced its partnership withVirgin Media O2 , introducing two of its highly acclaimed free ad-supported streaming (FAST) TV channels, ZenLIFE and Qello Concerts, to Virgin TV’s expansive customer base. - On
April 17, 2024 , the Corporation announced the launch of new channels on Samsung TV Plus. This rollout introduces Qello Concerts by Stingray, ZenLIFE by Stingray and Stingray Classica to users inMexico andBrazil , further expanding Stingray’s reach inLatin America and providing audiences with a rich selection of video channels tailored to diverse tastes and preferences. - On
April 2, 2024 , the Corporation announced the introduction of ZenLIFE, a rich digital wellness resource, now available as an add-on subscription on Prime Video via Prime Video Channels inthe United States . Customers can explore an extensive selection of high-quality 4K wellness content, featuring relaxation and meditation guides, sleep-enhancing videos, and breathtaking nature scenes. - On
March 20, 2024 , the Corporation announced the launch of Stingray All Good Vibes channels with Amazon’s Prime Video Channels inChile andColombia , a paid add-on subscription exclusive to Prime members. Prime members will have access to subscribe to Qello Concerts by Stingray, Stingray Karaoke, Stingray Classica, Stingray DJAZZ, and Stingray Naturescape. The launch showcases the quality and diversity of Stingray’s growing product portfolio and its strength in reaching new audiences. - On
March 11, 2024 , the Corporation announced the launch of new channels on Samsung TV Plus in additional territories. This rollout introduces a rich selection of music and video channels tailored to diverse tastes and preferences, now available to users acrossCanada ,Australia and New Zealand on Samsung Smart TVs, Galaxy devices, and more.
- On
February 29, 2024 , the Corporation announced the inclusion of Harnois Énergies’ Proxi and Proxi Extra convenience stores into its extensive retail audio advertising network. This alliance welcomes 152 stores acrossQuebec and 35 in theAtlantic provinces, marking Stingray Advertising’s first venture into the Canadian convenience store market. - On
February 15, 2024 , the Corporation announced thatLeap Media Group , Giant Eagle’s self-built, best-in-class retail media network, will join Stingray Advertising’s retail audio advertising network. Launching in 194 Giant Eagle stores across westernPennsylvania ,Ohio , northernWest Virginia ,Maryland , andIndiana , this partnership will allow the regional food retailer to engage with high-intent shoppers through innovative audio advertising solutions, personalizing their shopping experience in a privacy-conscious way. - During the fourth quarter of Fiscal 2024, the Corporation conducted an impairment test on intangible assets, which resulted in an impairment charge of
$56.1 million solely attributable to goodwill. This non-cash impairment charge was allocated to Radio segment’s group of Cash-Generating Units.
Conference Call
The Corporation will hold a conference call
About Stingray
Stingray (TSX: RAY.A; RAY.B), a global music, media, and technology company, is an industry leader in TV broadcasting, streaming, radio, business services, and advertising. Stingray provides an array of music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, over 100 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-car and on-board infotainment content. Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray's goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", and "continue", or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray's control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray's Annual Information Form for the year ended
Non-IFRS Measures
The Corporation believes that Adjusted EBITDA and Adjusted EBITDA margin are important measures when analyzing its operating profitability without being influenced by financing decisions, non-cash items and income taxes strategies. Comparison with peers is also easier as companies rarely have the same capital and financing structure. The Corporation believes that Adjusted Net income and Adjusted Net income per share are important measures as it shows stable results from its operation which allows users of the financial statements to better assess the trend in the profitability of the business. The Corporation believes that Adjusted free cash flow and Adjusted free cash flow per share are important measures when assessing the amount of cash generated after accounting for capital expenditures and non-core charges. It demonstrates cash available to make business acquisitions, pay dividend and reduce debt. The Corporation believes that Net debt and Net debt to Pro Forma Adjusted EBITDA are important to analyse the company's debt repayment capacity on an annualized basis, taking into consideration the annualized adjusted EBITDA of acquisitions made during the last twelve months. The Corporation calculates Cash flow from operating activities per share dividing Cash flow from operating activities by the weighted average number of shares (diluted).
Each of these non-IFRS financial measures is not an earnings or cash flow measure recognized by International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS. This method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.
Adjusted EBITDA, Adjusted Net income and LTM Adjusted EBITDA Reconciliation to Net income
3 months | 12 months | ||||||||
(in thousands of Canadian dollars) | 2024 Q4 2024 | 2023 Q4 2023 | 2024 Fiscal 2024 | 2023 Fiscal 2023 | |||||
Net income (loss) | (46,318 | ) | 4,447 | (13,741 | ) | 30,119 | |||
Impairment on goodwill | 56,119 | - | 56,119 | - | |||||
Net finance expense | 3,736 | 3,749 | 28,883 | 26,835 | |||||
Change in fair value of investments | (106 | ) | 11 | 18 | (289 | ) | |||
Income taxes | 3,639 | 753 | 16,030 | 9,540 | |||||
Depreciation and write-off of property and equipment | 1,183 | 2,406 | 8,342 | 9,737 | |||||
Depreciation of right-of-use assets | 1,192 | 1,225 | 4,420 | 4,506 | |||||
Amortization of intangible assets | 4,124 | 4,547 | 17,371 | 18,737 | |||||
Share-based compensation | 93 | 157 | 435 | 611 | |||||
Performance and deferred share unit expense | 4,711 | 2,068 | 6,841 | 1,857 | |||||
Acquisition, legal, restructuring and other expenses | 1,050 | 7,210 | 1,137 | 12,487 | |||||
Adjusted EBITDA | 29,423 | 26,573 | 125,855 | 114,140 | |||||
Adjusted EBITDA margin | 35.2% | 33.7% | 36.4% | 35.2% | |||||
Net income (loss) | (46,318 | ) | 4,447 | (13,741 | ) | 30,119 | |||
Adjusted for: | |||||||||
Impairment on goodwill | 56,119 | - | 56,119 | - | |||||
Unrealized loss (gain) on derivative instruments | (2,252 | ) | (70 | ) | (1,431 | ) | 739 | ||
Amortization of intangible assets | 4,124 | 4,547 | 17,371 | 18,737 | |||||
Change in fair value of investments | (106 | ) | 11 | 18 | (289 | ) | |||
Share-based compensation | 93 | 157 | 435 | 611 | |||||
Performance and deferred share unit expense | 4,711 | 2,068 | 6,841 | 1,857 | |||||
Acquisition, legal, restructuring and other expenses | 1,050 | 7,210 | 1,137 | 12,487 | |||||
Income taxes related to change in fair value of investments, share-based compensation, performance and deferred share unit expense, amortization of intangible assets, unrealized loss (gain) on derivative instruments and acquisition, legal, restructuring and other expenses | (2,039 | ) | (3,702 | ) | (6,437 | ) | (9,059 | ) | |
Adjusted Net income | 15,382 | 14,668 | 60,312 | 55,202 | |||||
Average number of shares outstanding (diluted) | 68,811 | 69,459 | 69,104 | 69,770 | |||||
Adjusted Net income per share (diluted) | 0.22 | 0.21 | 0.87 | 0.79 |
(in thousands of Canadian dollars) | 2024 Fiscal 2024 | 2023 Fiscal 2023 | |
LTM Adjusted EBITDA | 125,855 | 114,140 | |
Permanent cost-saving initiatives | 2,758 | 2,325 | |
Pro Forma Adjusted EBITDA | 128,613 | 116,465 | |
Adjusted Free Cash Flow Reconciliation to Cash Flow from Operating Activities
3 months | 12 months | ||||||||
(in thousands of Canadian dollars) | 2024 Q4 2024 | 2023 Q4 2023 | 2024 Fiscal 2024 | 2023 Fiscal 2023 | |||||
Cash flow from operating activities | 44,263 | 27,552 | 118,526 | 86,949 | |||||
Add / Less : | |||||||||
Acquisition of property and equipment | (2,351 | ) | (2,987 | ) | (7,812 | ) | (8,234 | ) | |
Acquisition of intangible assets other than internally developed intangible assets | (355 | ) | (383 | ) | (1,231 | ) | (1,281 | ) | |
Addition to internally developed intangible assets | (1,148 | ) | (1,236 | ) | (5,001 | ) | (5,943 | ) | |
Interest paid | (6,641 | ) | (6,842 | ) | (25,927 | ) | (23,892 | ) | |
Repayment of lease liabilities | (929 | ) | (1,122 | ) | (4,351 | ) | (4,433 | ) | |
Net change in non-cash operating working capital items | (17,661 | ) | (7,077 | ) | 5,983 | 7,482 | |||
Unrealized loss (gain) on foreign exchange | (958 | ) | (206 | ) | 636 | 527 | |||
Acquisition, legal, restructuring and other expenses | 1,050 | 7,210 | 1,137 | 12,487 | |||||
Adjusted free cash flow | 15,270 | 14,909 | 81,960 | 63,662 | |||||
Calculation of Net Debt and Net Debt to Pro Forma Adjusted EBITDA Ratio
(in thousands of Canadian dollars) | 2024 | 2023 | |||
Credit facilities | 338,712 | 360,990 | |||
Subordinated debt | 25,579 | 25,543 | |||
Cash and cash equivalents | (9,606 | ) | (15,453 | ) | |
Net debt | 354,685 | 371,080 | |||
Net debt to Pro Forma Adjusted EBITDA | 2.76 | 3.19 | |||
Note to readers: Annual consolidated financial statements and Management’s Discussion & Analysis of Operating Results and Financial Position are available on the Corporation’s website at www.stingray.com and on SEDAR at www.sedar.com.
Contact Information
Mathieu Péloquin
Senior Vice-President,
Stingray
(514) 664-1244, ext. 2362
mpeloquin@stingray.com
Source:
2024 GlobeNewswire, Inc., source