Stingray Group Inc. (TSX: RAY.A; RAY.B), a distributor of audio and video music brands in the world, overnight Tuesday reported fiscal fourth-quarter adjusted earnings of $14.7 million, or $0.21 per share, up from $11.8 million, or $0.17 per share, a year earlier.
Revenue for the quarter ended March 31 was $78.9 million, up from $72.6 million a year earlier.
Stingray's Q4/23 revenues and adj. EBITDA were relatively in line with expectations, while EPS beat ($0.21 vs. cons. $0.17). Consolidated margins should strengthen as the B&C segment scales. SVOD net adds growth slowed to +11k, but should improve with new regional, vertical and platform expansion, BMO Capital writes.
In audio advertising, the company is targeting increased customer spend from consumer insights usage in the U.S. and national expansion opportunities in Canada. Stingray purchased the Ultimate Trivia Network, a FAST channel for $1.9million. Debt reduction remains a priority for F24.
BMO has an Outperform and a $7 target on the stock.
The company declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share, and multiple voting share on March 22. The dividend was paid by June 15 to shareholders on record as of May 31.