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.