Stingray Reports Second Quarter 2019 Results

Adjusted EBITDA(1) growth of over 20%

Second Quarter Highlights

  • Closing of the Newfoundland Capital Corporation (“NCC”) acquisition significantly improve adjusted free cash flow to approximately $1.00 per share on a pro-forma basis.
  • Stingray’s net debt to Adjusted EBITDA(1) ratio on a pro forma basis is 3.16 times
  • Stingray to maintain historical shareholder dividend payout ratio in the range of 30% and 40% of its Adjusted free cash flow. Dividends are expected to be adjusted twice a year in line with historical practice.
  • Quarterly dividend of $0.06 per share.
  • Acquisitions of Novramedia Inc., a Toronto-based leader in the design, development, an implementation of digital media solutions and DJ-Matic, a European provider of in-store media solutions (music, video, digital signage), subsequent to the quarter
  • Revenues increased 11.1% to $34.7 million with organic growth of 5.4%, excluding non-recurring equipment and installation sales related to digital signage
  • Recurring revenues(2) of $30.7 million or 88.4% of total revenues, an increase of 14.5%
  • Adjusted EBITDA(1) up 20.9% to $11.4 million
  • Net income increased to $0.8 million or $0.01 per share (diluted) compared to a net loss of $3.4 million or $0.07 per share (diluted) last year
  • Subscription video on demand (“SVOD”) revenue increased while subscribers slightly declined
  • 1.8% over previous quarter

Montreal, November 7, 2018 – Stingray Digital Group Inc. (TSX: RAY.A; RAY.B) (the “Corporation”; “Stingray”),
a leading business-to-business multi-platform music and in-store media solutions provider, today announced its financial results for the second quarter ended September 30, 2018.

Read the complete press release