- Stingray (RAY.A) has revealed the impact of COVID-19 on the company’s latest quarterly financials
- Quarterly revenue fell 35 per cent to just C$52.3 million, primarily on the back of a 62.1 per cent revenue drop in its radio business segment
- The company total net loss for the quarter was a slight improvement, down from $9.18 million last year to $7.02 million this year
- The company’s operational costs fell 43.8 per cent, down to $28.3 million from $50.3 million last year
- Stingray (RAY.A) is down 1.23 per cent and is trading at $5.03 per share
Stingray (RAY.A) has revealed the impact of COVID-19 on the company’s radio business in its latest quarterly report.
Quarterly revenue have sunk 35 per cent for the quarter, down from C$80.4 million to just $52.3 million for the June quarter.
The entertainment giant’s revenues fell sharply on the back of declining radio revenues due to the coronavirus pandemic, alongside some smaller slides in broadcasting and commercial music revenues.
Overall, revenues from the radio section of the business fell a whopping 62.1 per cent. However, due to the decline costs of operating during the pandemic, the damage hasn’t been as severe as expected.
The company’s operational costs fell 43.8 per cent, down to $28.3 million from $50.3 million last year.
Adjusted EBITDA fell 18.2 per cent to $25.5 million, and cash flows from operations grew to $38 million from $26.3 million to year prior.
Ultimately, the company’s net loss improved for the quarter, going from a loss of $9.18 million last year to $7.02 million this year.
Eric Boyko, the President, Co-founder and CEO of Stingray said the full impact of COVID-19 had hit the radio segment of the business particularly hard.
“The timing and areas of deconfinement varied from one province to another, and from one region to another.
“Considering our capacity to reduce our operating expenses combined with a significant improvement in our balance sheet, we are well positioned to benefit from the strong growth in our broadcast and commercial music revenues for the foreseeable future,” he said.
Stingray (RAY.A) is down 1.23 per cent and is trading at $5.03 per share at 11:17am EDT.
