MONTREAL – Stingray Group Inc. says its net income more than doubled in its second quarter despite a 16 per cent drop in revenues.

The Montreal-based company said it earned $11.9 million or 16 cents per share in the three months ended Sept. 30, up from $5.2 million or seven cents per share a year earlier.

Adjusted profits rose 31.4 per cent to $16.3 million or 22 cents per share, from $12.4 million or 16 cents per share in the second quarter of 2019.

Revenues fell to $64.3 million from $76.6 million a year ago, primarily due to the impact of the COVID-19 pandemic on radio revenues.

Stingray was expected to report 21 cents per share in adjusted profits on $64.2 million of revenues, according to the financial markets data firm Refinitiv.

Advertising revenues increased more than five-fold from last year’s low level as the number of streaming subscribers reached a new high of 480,000 in a seasonally slow quarter. That’s up 10 per cent from the first quarter and 32 per cent from the second quarter of 2019.

“In the current context, we are extremely pleased with our second-quarter results,” stated CEO and co-founder Eric Boyko.

This report by The Canadian Press was first published Nov. 4, 2020.

Companies in this story: (TSX:RAY.A, TSX:RAY.B)