(Montreal) With the decline of traditional television, the musical channels attract advertisers who seek a spare solution, has the boss of Stingray, Eric Boyko, was shimmering during a call conference with analysts on Wednesday.
“(American advertisers who broadcast on traditional television) want to join you at home, but they cannot because people watch Netflix,” said the co -founder of the Montreal company. We give these advertisers access to a unique audience. »»
The manager of the music service provider spoke of the depth of Lake Baikal in Russia to illustrate the potential of the advertising market in the musical television channel segment. “I don’t know the depth, but the lake is so deep that there are a lot of opportunities. »»
Musical channel distributors, such as Roku or Vizio, sold almost 40 % of the advertising space available on Stingray channels. “The remaining 60 % was lost,” said Mr. Boyko.
He believes that the company can seek more advertisers by courting them on its own. Stingray began his efforts in April. He said the results are improving “from week to week”. “I must say that I have never seen such growth for a business segment of my life. »»
Boyko also stressed that this growth could be done without requiring significant investments. He mentioned the hiring of a professional and the use of a part -time consultant.
The company revealed that its income from its Division Stingray Advertising, which includes musical channels and music broadcast in shops, increased by 40 % during the first quarter enclosed on June 30.
As music music has experienced a decline, analyst Jérôme Dubreuil, from Desjardins Capital Market, believes that income from musical channels have doubled.
For their part, radio stations generated revenues of 34.2 million, up 6.2 %. Mr. Boyko explained that electoral advertisements and advertising campaigns to react to the craze for local purchase have foiled sales. “I don’t think we can expect this growth, but I am very satisfied. »»
Regarding potential acquisitions, Mr. Boyko said that the steps to carry out larger transactions were “on pause” due to the economic uncertainty linked to the policies of the American president, Donald Trump. The management and the board of directors lean towards caution.
The company is however open to small acquisitions, like that of the car supplier by car, The Singing Machine Company, announced earlier this week. Mr. Boyko said the transaction cost “less than 1 million” during the conference.
The businessman predicted that karaoke would be a common service for new cars within five years. “It’s fantastic for us, it’s fantastic for car manufacturers, it’s not good for parents forward,” he said to the joke.
Stingray’s revenues increased by 7.4 %, to 95.6 million, in the first quarter enclosed on June 30, compared to 89.1 million at the same period last year.
Products increased by 6.5 million, or 7.4 %, reaching 95.6 million in the first quarter of the year 2026, compared to 89.1 million in the same quarter of the previous year. Net profit has more than doubled, from 7.3 million to 16.8 million. The profit adjusted per share was quantified at $ 0.31.
Before the publication of the results, analysts anticipated income of 96.49 million and a profit per share of $ 0.28, according to the financial data firm Refinitiv.
Stingray’s action lost $ 0.57, or 5.26 %, at $ 10.27 when the Toronto Stock Exchange is closed on Wednesday session.