MONTREAL – Stingray Group Inc. capped a challenging year with net profits plunging to $4.5 million in the fourth quarter despite higher revenues.

The Montreal-based music and media company says its profit for the quarter amounted to six cents per diluted share, compared with 17 cents per share or $12.1 million a year earlier.

Adjusted profits slipped to $11.8 million or 17 cents per diluted share, compared with nearly $12 million or 16 cents per share in the fourth quarter of 2021.

Revenues for the three months ended March 31 increased 21.6 per cent to $72.6 million from $59.7 million in the prior year.

Stingray was expected to report 19 cents per share in adjusted profits on $70.3 million of revenues, according to financial data firm Refinitiv.

It attributed the lower profits to a lower gain on derivative financial instruments and a foreign exchange loss that was partially offset by a lower income tax expense.

“During the past year, the radio segment continued its recovery, despite softness in some traditional end-markets that have not fully resumed advertising spending,” stated co-founder and CEO Eric Boyko, noting that segment revenues were up 26.3 per cent.

For the full-year, net income decreased 26 per cent to $33.3 million while revenues were up 14 per cent to $282.6 million.

This report by The Canadian Press was first published June 7, 2022.

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