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Canada's Stingray Group Q2 revenue jumps on higher advertising revenues

By Reuters News


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

  • Nov 9 - PubMatic's Q3 revenue beats estimates on AI demand

  • Nov 9 - Viant Technology Q3 revenue rises 29% on CTV advertiser strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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