Stingray Digital reports flat Q4 profit, lower adjusted earnings amid acquisitions

MONTREAL _ Stingray Digital Group Inc. says it had nearly $4.7 million of net income in its fiscal fourth quarter, up from $4.6 million in the comparable period last year.

The Montreal-based business-to-business provider of music and in-store media says the profit amounted to eight cents per share, down from nine cents per share a year earlier.

The company issued additional equity last October, diluting earnings per share in subsequent quarters.

Stingray’s revenue for the quarter ended March 31 was $33 million, up 24.7 per cent from a year earlier, primarily due to several acquisitions.

After the quarter ended, Stingray announced plans to acquire Newfoundland Capital Corporation Ltd., which has radio stations across Canada.

The deal was valued at $506 million, including $112 million of net debt that it will assume. NCC shareholders will receive a combination of cash and Stingray stock worth $14.75 per share.

The transaction requires approvals including from shareholders, who are expected to meet in July.

Members of the Steele family, representing approximately 87 per cent of the outstanding shares and approximately 93 per cent of the voting rights of NCC, have entered into irrevocable voting support agreement.