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spk00: Good morning, ladies and gentlemen, and welcome to the Stingray Group Incorporated first quarter 2024 results call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, August 9th, 2023. I would now like to turn the conference over to Mathieu Polacan.
spk01: Good morning. Bon matin à tous. Thank you for joining us for Stingrays Conference Call for its first quarter results, and ended June 30, 2023. Today, Eric Boyko, President and CEO, as well as co-founder and GP Trans CFO, will be presenting Stingrays financial and operational highlights. Our press release reporting Stingray's first quarter results for fiscal 2024 was issued yesterday after the market closed. Our press release MD&A and financial statements for the quarter are available on our investor website at stingray.com and also on CEDR. I will now give you the customary caution that today's discussion of the corporation's performance and its future prospect may include forward-looking statements. The corporation's future operation and performance are subject to risk and uncertainties and actual results may differ materially. These risk and uncertainties include but are not limited to the risk factors identified in Stingray's annual information form dated June 6, 2023, which is available on CEDR. The corporation specifically disclaims any intention or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Accordingly, you're advised not to place undue reliance on such forward-looking statements. Also, please be reminded that some of the financial measures discussed over the course of this conference call are non-IFRS. Please refer to Stingrays MD&A for complete definition and reconciliation of such measures to IFRS. Financial measures. Finally, let me remind you that all amounts on this call are expressed in Canadian dollars, unless otherwise indicated. With that, let me turn the call over to Eric.
spk02: Okay, merci, Mathieu. Good morning, everyone, and welcome to our first quarter conference call for fiscal 2024. Stigma delivered robust adjusted EBITDA of $28.3 million, representing 35.8% of sales in the first quarter of 2024, thanks to cost-saving initiatives implemented over the past year. Despite a temporary slowdown in revenue growth due to the timing of retail media advertising campaigns, I am pleased to report current revenues for Stingray Advertising in the second quarter are plus 45% year-over-year at this point. We remain on target to achieve our goal of 40% growth in the advertising revenues for 2024. We also recently announced a sales agreement in Mood Media. vibranomics advertising division, a leading technology and retail media solution provider that creates the largest retail media audio network in the U.S. This groundbreaking collaboration will provide advertisers south of the border with an unmatched national presence, reaching over 800 million monthly shoppers through in-store digital audio advertising across 25,000 brick-and-mortar locations. This broad network will encompass major players in key retail verticals, including grocery, drugs, convenience, and home improvements. Expansions to other verticals will continue in 2024. This announcement comes during a period of significant growth for the retail media advertising in the U.S., with a spending forecast to increase from $31 billion in 2021 to an anticipated $61 billion by 2024, as per the eMarketer Retail Media Ad Spending Forecast Report. In addition, we secured a deal last week with Loblaw Media, the retail media division of Loblaw Companies, to expand Stingray's retail auto advertising network into Loblaw stores across Canada. The Loblaw stores auto network will expand nearly 300 locations, including Loblaw, Veers, Real Canadian Superstores, and other retail banners. With campaign expected to begin as soon as mid-August.
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