Canada's Stingray Group Q2 revenue jumps on higher advertising revenues
Overview
Canada streaming media firm's Q2 revenue up 51% yr/yr, slight miss to analyst expectations
Q2 adjusted EPS missed analyst expectations; adjusted EBITDA rose 48% and beat estimates
Company raised quarterly dividend
Outlook
Stingray targets annual adjusted EBITDA margin of 35%
Stingray sees mid to long term growth opportunities in Connected TV and FAST channel vertical
Result Drivers
TUNEIN ACQUISITION - Higher advertising revenues from TuneIn and related revenue and cost synergies drove Q2 results
FAST CHANNEL EXPANSION - Expansion and monetization of FAST channels contributed to revenue growth
PRODUCT MIX SHIFT - Lower gross margins from TuneIn and The Singing Machine offerings, combined with a shift in product mix, reduced EBITDA margin
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | C$171.40 mln | C$172.40 mln (6 Analysts) |
Q2 Adjusted EPS | Miss | C$0.51 | C$0.52 (4 Analysts) |
Q2 Adjusted Net Income | Beat | C$34.75 mln | C$28.94 mln (2 Analysts) |
Q2 Net Income | C$16.21 mln | ||
Q2 Adjusted EBITDA | Beat | C$58.31 mln | C$57.51 mln (6 Analysts) |
Q2 Cash Flow From Operating Activities | C$44.25 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the broadcasting peer group is "buy"
Wall Street's median 12-month price target for Stingray Group Inc. is C$21.00, about 24.9% above its November 10 closing price of C$16.81
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Nov 10 - Canada's VerticalScope Q3 revenue misses estimates due to lower programmatic advertising
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Nov 9 - Viant Technology Q3 revenue rises 29% on CTV advertiser strength
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)