Stingray reports lower Q1 revenue, earnings as pandemic hits radio business

MONTREAL — Stingray Group Inc. says revenue in its fiscal first quarter ended June 30 fell by 35 per cent to $52.3 million as the impact of the COVID-19 pandemic hit revenue from radio operations.

It is reporting net income of $7.02 million, down 23.5 per cent from $9.18 million on revenue of $80.4 million in the same period of 2019.

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The Montreal-based company, which provides an advertising-free music service, says it had $13.5 million or 18 cents per share in earnings adjusted to exclude one-time items, beating analyst expectations of 16 cents per share, according to financial data firm Refinitiv.

That compared with an adjusted profit of $16.7 million or 21 cents a year earlier.

Radio revenues decreased by 62 per cent, while broadcasting and commercial music revenues were down by 3.7 per cent in the quarter.

It says revenues in Canada fell by $28 million or 50 per cent from $56.1 million in the year-earlier period, while revenues in the United States increased 12.7 per cent to $10.3 million, mainly due to organic growth in subscriptions.

"The full impact of COVID-19 hit the radio segment during the quarter," said CEO Eric Boyko in a statement.

"For provinces and cities that opened their economies faster, we are seeing encouraging signs of recovery and we are confident that key markets for us, such as Toronto and Ottawa, could follow similar patterns."

This report by The Canadian Press was first published Aug. 4, 2020.

Companies in this story: (TSX:RAY.A)

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