Q1 2025 Stingray Group Inc Earnings Call Transcript
Key Points
- Stingray Group Inc (STGYF) reported a robust 12.8% increase in revenues for Q1 2025, reaching $89.1 million, driven by strong growth in FAST channel and retail media advertising revenues.
- Retail media revenues grew by more than 55%, while FAST channels revenue soared into the triple-digit range, contributing to a remarkable organic growth of 17.1% year over year in broadcast and recurring commercial music revenues.
- The company achieved a significant milestone with a run rate of 55 million listening hours per quarter on FAST channels, leveraging partnerships with major brands like Samsung, LG, and Vizio.
- Stingray Group Inc (STGYF) acquired The Coda Collection, enhancing its portfolio of music streaming services and solidifying its leadership in concert streaming on the Amazon platform.
- The company released its first sustainability report, reflecting its commitment to transparency and responsibility, structured around social prosperity, responsible business, and environmental engagement.
- Revenues in other countries decreased by 4.2% year over year to $12.1 million, primarily due to reduced subscription and audio channel revenues.
- The adjusted EBITDA margin declined from 35.8% to 34.9% due to the revenue mix and lower margins for retail media advertising.
- Net income decreased to $7.2 million or $0.11 per share in Q1 2025, compared to $14.1 million or $0.20 per share in Q1 2024, mainly due to an unrealized loss on the fair value of derivative financial instruments.
- Cash flow from operating activities decreased to $10.8 million in Q1 2025 from $24.3 million in Q1 2024, impacted by higher negative changes in non-cash operating items and greater income taxes paid.
- The company faces challenges in evangelizing the retail media market, requiring significant effort to attract new customers despite a high customer retention rate.
Good morning, ladies and gentlemen, and welcome to the Stingray Group Inc.'s Q1 2025 results call conference call. (Operator Instructions)
This call is being recorded on Wednesday, August 7, 2024. I would now like to turn the conference over to Mathieu Peloquin. Please go ahead.
Thank you. (spoken in foreign language)
Good morning, everyone, and thank you for joining us for Stingray's conference call for its first quarter results ended June 30, 2024. Today, Eric Boyko, President, CEO and Co-Founder; as well as Jean-Pierre Trahan, CFO, will be presenting Stingray's operational and financial highlights.
Our press release reporting Stingray's first-quarter results for fiscal 2025 was issued yesterday after the market closed. Our press release, MD&A and financial statements for the quarter are available on our investor website at stingray.com, as well as SEDAR+.
I will now provide you with the customary caution that today's
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