11:30 AM EDT, 06/05/2024 (MT Newswires) -- (Adds analyst comment.)

Stingray (RAY-A.TO) shares were last seen up 11% after the company on Wednesday said it swung to a fiscal fourth-quarter loss as a charge for impairment of goodwill in the radio segment pulled down its results.

The company reported a loss of $46.3 million, or $0.67 per share, for the three months ended March 31, compared with a profit of $4.4 million, or $0.06 per share, in the year-prior quarter.

In the quarter, the company booked a one-time non-cash goodwill impairment charge of $56.1 million.

On an adjusted basis, excluding most one-time items, the company reported a profit of $15.4 million, or $0.22 per share, up 4.9% from $14.7 million, or $0.21 per share, a year earlier. The result matched the consensus estimate of analysts polled by Capital IQ.

Revenue rose 6% to $83.7 million , up from $78.9 million a year ago. An increase in FAST channel and retail media along with improved results in the radio segment helped fuel the revenue growth.

Adjusted EBITDA for the quarter was $29.4 million, up 10.7% from $26.6 million a year ago.

As of March 31, the company had cash and cash equivalents of $9.6 million, subordinated debt of $25.6 million, and credit facilities of $338.7 million, of which about $83.4 million was available.

The company declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share, and multiple voting share on March 19. The dividend will be paid by June 15 to shareholders on record as of May 31.

"Looking ahead to fiscal 2025, we will continue evangelizing the retail media advertising sector, while growing our footprint and fill rate," said Stingray chief executive Eric Boyko. "We also expect further growth from our FAST channel business, now supported by a quarterly run-rate of more than 40 million listening hours."

National Bank reiterated its outperform rating and left its $9.00 price target on the company's shares unchanged following the in-line quarter.

The analysts noted that the revenue of $83.7 million was in line with the NBF estimate of $83 million and the consensus estimate of $85 million.

.Adjusted EBITDA was slightly ahead of the NBF estimate of $28.8 million, and the consensus estimate of $28.6 million.

The company's Class A shares were last seen up $0.75 to $7.70 on the Toronto Stock Exchange.

Price: 7.65, Change: +0.70, Percent Change: +10.07