Stingray Group Inc.

Good morning, ladies and gentlemen, and welcome to the Stingray Group, Inc. Q3 2024 Results Conference Call. At this time, note that all lines are in the listen-only mode. But following the presentation, we will conduct a question-and-answer session. And if at any time during this call you require immediate assistance, please press star zero for the operator. Also note that the call is being recorded on Wednesday, February 7, 2024. And now we'd like to turn the conference over to Mathieu Pellocchi. Please go ahead.

Merci beaucoup. Good morning, everyone, and thank you for joining us for Stingrays Conference Call for its third quarter results for fiscal 2024, ended December 31, 2023. Today, Eric Boyko, President, CEO, and co-founder, as well as Jean-Pierre Therrien, CFO, will be presenting Stingrays operational and financial highlights. Our press release reporting Stingray's third quarter results for fiscal 2024 was issued yesterday after the market closed. Our press release, MD&A, and financial statement for the quarter are available on our investor website at stingray.com as well on CEDR. I will now provide you with 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 risks 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 SETR. 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. Please be reminded that some of the financial measures discussed over the course of this conference call are non-IFRS. Please refer to Stingrays and DNA 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.

Good morning, everyone, and welcome to our third quarter conference call for fiscal 2024. Stingray delivered exceptional and historical third quarter results, surpassing $100 million in revenues marked for the first time in the company's existence, while generating adjusted EBITDA of $38.6 million and adjusted free cash flow of $32.7 million. This outstanding operating performance was driven by organic growth of 23.9% year-over-year in broadcast and recurring commercial music revenues, including a combined 84% increase in retail media and fast channel advertising revenues. We are trailblazers in the retail media advertising industry, providing large retailers with a technology platform that carries customizable ads across a digital network every few minutes to fully monetize the presence of in-store consumers. The response of the U.S. market has been remarkable, with overall stigma revenues growing 39.7% south of the border in the third quarter, and 21.4% after nine months into the fiscal year. Overall, Canada accounted for 51% of sales in the third quarter, followed by the U.S. at 37%, and other countries at 12%. Going forward, we believe there's plenty of room for revenue growth, particularly in the vast U.S. market. On the fast-channel side, we nearly doubled listing hours sequentially to 29 million hours through the integration of 18 new Stingray channels on Samsung TV Plus in the US. We estimate that our current run rate of hours is now at 40 million hours per quarter. The introduction of audio channel marks a major milestone in our pivot from traditional cable distribution to OTT platforms like connected TVs. We believe digital platforms will continue to simply grow for the years to come. Turning to Incar Entertainment, the initial deployment of Stingray Karaoke and 300,000 cars in BYD, the biggest EV car manufacturer in the world, is steadily progressing and we further expanded our partnership with the world's leading manufacturer of new energy vehicles through the launch of Calm Radio in models across dozens of countries. This latest agreement is highly significant because it diversifies our automobile product offering into a wellness space to enhance the driver's journey while highlighting our emerging relevance in global in-car entertainment landscape. As for the SVOD segment, subscription reached more than $810,000 in the third quarter on the strength of relationship with Amazon and Singing Machine Company, connecting more electronic devices worldwide. Equally important, our strategic decision to reduce investment in B2C while prioritizing B2B partners as improved the bottom line for Stainway's SVOD business for fiscal 2024. Altogether, revenues from broadcasting and commercial music business increased 21% to $65.6 million in the third quarter of 2024, while radio revenues are stable year-over-year at $34.6 million, as we continue capturing share in local markets through our direct sales force. Given sustained robust financial results, We are confident that Stingray will generate strong growth revenue in fiscal 2025 with a similar margin profile. From a balance sheet standpoint, I am pleased to report a net debt to pro forma adjusted EBITDA ratio improved to 2.99, so below 3 in the third quarter, as we accelerate the repayment of our credit facility. We are well ahead of our plan and expect to further decrease our debt in Q4. In summary, all key performance indicators are pointing in the right direction. I will now turn to CFO Jean-Pierre for the financial overview.