Stingray Group Inc.

Good morning, ladies and gentlemen, and welcome to Stingray Group's Q2 2026 results conference call. At this time, all lines are in 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 the star zero for the operator. This call is being recorded on Wednesday, November 12, 2025. I would now like to turn the conference over to Matthew Pelletine. Please go ahead.

Thank you very much. Bon maté. Good morning, everyone. And thank you for joining us for Stingrays Conference Call for the second quarter of fiscal 2026, ended September 30, 2025. Today, our Boiko president, CEO, co-founder, and Marie-Hélène Fournier, interim CFO, will be presenting Stingrays operational and financial highlights. Our press release reporting Stingray's second quarter results was issued yesterday after the market closed. Stingray also issued a press release to announce the acquisition of TuneIn Holdings, which will be discussed on the call. These press releases, as well as the MD&A and financial statements for the quarter, are available on our investor website at stingray.com and on Setter Plus. I will now provide you with the customary caution that today's discussion of the corporation's performance and its future prospects may include forward-looking statements. The corporation's future operations 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 our press release announcing the tune-in acquisition, and Stingray's annual information form dated June 10, 2025, which is available on CEDAR+. 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 are advised not to place undue reliance on such forward-looking statements. Also, please be advised that some of the financial measures discussed over the course of this conference call are non-IFRS. Refer to Stingrays MD&A for a complete definition of 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.

Merci, monsieur. Good morning everyone and welcome to our second quarter conference call for fiscal 2026. What a busy day we're having. Today marks a pivotal moment for Stingray as we're not only reporting solid Q2 results but also announcing the second largest acquisition and the largest U.S. acquisition in the corporation's history, Tuning Holdings, creating an audio streaming and advertising powerhouse. This transformative acquisition is expected to greatly expand Stingray's global digital audio footprint, video footprint, and accelerate its growth in streaming services and bolster its advertising offering. But before sharing with you more of the major highlights, let's review Stingray's continued achievement for the second quarter. Stingray's momentum accelerated with organic growth of 16.7% in broadcast and recurring commercial music, largely driven again by rapidly increasing fast channel sales where we have Unmiskin become the leading provider of music, ambiance, and music entertainment channels. During the quarter, we further expanded our premium advertising network by securing a second partnership with LG for additional supply and ad inventory. They will join Vizio in our growing portfolio of partners, and we anticipate adding a lot more in the next year. We civilly diverse our fast channel portfolio in Q2, launching 29 channels with Amazon Fire TV in the US, seven on Roku USA and UK. This builds our success on our recent Roku launch in North America, which are generating over 50,000 listening hours a day or 1.5 million a month. When we were looking at advertising revenue for the quarter, we achieve a remarkable growth of 55%. significantly surpassing our 40% target. This outstanding performance was driven by a year-to-year revenue increase in retail media and, again, strong growth in our fast channel sales. A couple of weeks ago, we announced the acquisition of VMI, a leader in music branding and in-store audio advertising. This represents a strategic transaction for Stingray because it expands our U.S. retail network by 8,500 Walgreen location, and we reached 33,000 locations across North America. For the first time, now Stingray is officially the pharmacy network. We cover all pharmacies across US and Canada. It constantly our leadership position within the in-store audio advertising market and helps global brands reach and engage consumer in their shopping journey. We are pleased to welcome the DMI team to Stingray. And last, for the in-car entertainment segment, we recorded a double-digit revenue growth increase in the second quarter as new vehicles have progressively replaced older fleets. With the recently announced launch of the Advanced Karaoke Experience for BYD vehicles, we expect this trend to continue. Altogether, revenues from our broadcasting and commercial music division grew by 33% to $80 million, this quarter, while radio revenues declined less than 1% to 32.4 million. Our latest numerous PPM ratings for summer 2025 highlight our strong momentum in Canadian radio, showing significant and significant growth in our key markets. On a consolidated basis, we delivered growth of 21% to 113 million in sales, which is a record, and adjusted EBITDA improved by 16.3 to 39.5. Now, tuning to our tune-in acquisition. Good play of words. Now turning our focus on the tune-in acquisition. Given the strong progress we're making with key growth pillars and our strong free cash flow, we believe the timing is right to announce the second largest acquisition in the corporation history, tune-in holding. This acquisition will further strengthen Stinger's position as a global leader of audio and video entertainment and digital advertising sales. Tune-in. is a pioneer in audio streaming content serving 75 million active listeners each month and providing access to 100,000 radio stations and podcasts and music channels. With over 600 million hours of listenership per month, we are the third most listened to channel in the world after our friends at YouTube Video and Spotify. TuneIn's digital content is distributed across more than 200 platforms in 100 countries and fully integrated in 50 in-car audio systems. Equally important, and probably what we're most excited, TuneIn has redefined the art of programmatic advertising via its strategic ad channel partners, reaching audience across our platform with innovative audio, display, and video ad products. It's a growing ad segment, represents more than 70% of its revenues, with the rest coming from premium subscription. We are crafting an unmatched audio-video ecosystem by merging Stingray extensive technology infrastructure and content distribution capabilities with TuneIn expertise in monetization, advertising technology, and diverse content offering. We're partly excited about expanding our reach in the automotive sector, where TuneIn and Stingray have both established strong integration with leading manufacturers. We are confident that this highly transformative acquisition supported by their cost synergies within the next 12 months of closing will supplement our robust internal growth in digital advertising with our CTV and retail media offering and our car offering, delivering solid margin over time and building shareholder value. Overall, the transaction carries an enterprise value of up to $175 million, $125 million paid out at closing of the transaction by the end of 2025, and an amount of $25 million to be paid post-closing. The deal is subject to the regulatory authorities of customary closing conditions. Tudin is expected to generate an estimate of $110 million of revenues this year and $30 million of U.S. EBITDA, plus with our 10 million of synergies that we expect to come. TuneIn will continue to operate under its existing brand and be led by the existing management team. Combined business are expected to generate 560 million of revenues on a pro forma basis and over 200 million pro forma adjusted EBITDA as of December LTM. We also expect our free cash flow to increase by 50% and to be above $2 per share. I'll conclude that our balance sheet, which remains solid even after these two pivotal transactions, we expect after closing of this transaction that our debt EBITDA will be around 2.8 and we expect to deliver and be below 2 by December of next year or in the next 12 months. Reflecting our strong financial performance and our confidence in future cash flow generation, I am pleased to announce that the board has approved a 13.3% increase in our quarterly dividend, raising it from 0.75 cents to 8.5 cents. This decision underscores our commitment to delivering sustainable long-term value to our shareholders. I will now turn the call to Marie-Hélène for a fantastic financial overview of the quarter. Marie.

Thank you, Eric. Good morning. Revenues reached $113.3 million in the second quarter of fiscal 2026, up 21% from $93.6 million in Q2 2025. The year-over-year growth was mainly driven by greater fast-channel revenues and higher equipment sales related to the acquisition of the singing machine. Revenues in Canada rose 5.2% to $51.5 million in the second quarter of 2026, The goal can mainly be attributed to higher equipment and installation sales related to digital signage. Revenues in the U.S. grew 57.9% year-over-year to 51.9 million in Q2 2026, reflecting higher fast channel revenues and greater equipment sales related to the acquisition of the singing machine. Revenues in other countries decreased 16.2% to 9.8 million in the most recent quarter, The year-over-year decline was mainly due to lower subscription revenues. Looking at our performance by business segment, broadcasting and commercial music revenues increased 32.8% to $80.9 million in the second quarter of 26. The growth was primarily driven by high fast channel revenues and greater equipment sales related to the acquisition of the singing machine. For their part, radio revenues decreased 0.9% to $32.4 million in Q2 due to lower national airtime sales, mostly offset by higher digital revenues. In terms of profitability, consolidated adjusted EBITDA improved 16.3% to $39.5 million in the second quarter. Adjusted EBITDA margin reached 34.9% in Q2 26 compared to 36.3% in the same period in 2025. The increase in adjusted EBITDA dollars year-over-year can be attributed to higher revenues, partially offset by greater operating expenses, mostly due to higher cost of sales. By business segment, broadcasting and commercial music adjusted EBITDA grew 24.8% to $31.2 million in the second quarter of 2026. The year-over-year increase was primarily driven by higher revenues. Adjusted EBITDA for our radio business decreased 7.2% year-over-year to $10.2 million in the second quarter of 2026. Adjusted EBITDA for this segment was negatively affected by a higher proportion of digital revenues, which carry a greater cost of sales. Control over fixed costs helped minimize overall cost increases. In terms of corporate adjusted EBITDA, it remained stable at a negative $1.9 million in the second quarter of 2026. Singaree reported net income of $11.8 million or $0.17 per diluted share in the second quarter of 2026 compared to $5.8 million or $0.08 per diluted share in Q2 2025. The improvement was driven by better operating results and an unrealized gain on the fair value of derivative financial instruments. These factors were partially upset by the higher performance and deferred shared unit expense related to an increase in the corporation's share price. Adjusted net income totaled $21.9 million, or $0.32 per diluted share, in Q2 2026, compared to $16.7 million, or $0.24 per diluted share, in the same period in 2025. The increase was mainly due to higher operating results and lower interest expense, partially offset by a greater income tax expense. Turning to liquidity and capital resources, cash flow from operating activities totaled 24.3 million in Q2 compared to 19.2 million in Q2 2025. The year-over-year increase reflects higher operating results. Similarly, our business also generated a significant year-over-year increase in adjusted free cash flow. In the second quarter of 2026, it totaled 28.4 million compared to 21.1 million in the same period in 2025. The improvement can be attributed to higher operating results and lower interest rates. For a balance sheet standpoint, Stingray adds cash on cash equivalent of $15.1 million at the end of the second quarter and a credit facility of $236.3 million. The credit facility consists of a $500 million revolving credit line of which $162.1 million was available. After the quarter, we also finalized the financing for the tune-in acquisition. We secured an additional $150 million USD term loan and extended our credit facilities maturity by one year to November 2029. Total net debt at the end of the second quarter of 2026 stood at $321.1 million, down $4.8 million from the end of last quarter as we continue to reduce our debt level. Combined with improved adjusted EBITDA over the last 12 months, our leverage ratio improved to 2.13 times at the end of the quarter from 2.72 times in the same period last year. Finally, we repurchased 311,500 shares for a total of 3.1 million during the second quarter after our existing NCIB program, which was renewed for another 12 months. We also made dividend payments of 5.1 million in the quarter to reward shareholders. As Eric mentioned earlier, our commitment to delivering shareholder value remains a top priority. In recognition of our strong performance and positive outlook, the board has declared a quarterly dividend of 8.5 cents per share. This represents a 13.3% increase and reflects our confidence in our ability to generate sustainable cash flow for the long term. This ends my presentation. I will now turn the call over to Eric.

Thank you, Marie. Thank you, everyone, for your time and remarks today. I think we're ready for our questions from our team. Again, we didn't have a chance, but thank you. Also, welcome to the TuneIn team. Very excited to have TuneIn. It's about 105 people, so very happy to have a larger family and excited on working together and maintaining the the high momentum that we have right now. So with this, we'll go to the question part. Merci.

Thank you. If you would like to ask a question, please press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star too. With that, our first question comes from Arvind Kalapatike with Canaccord. Please go ahead.

Good morning. Thanks for taking my question and congrats, Eric and the team, on the acquisition and the quarter. I'll start with a question or a couple questions on tune-in. First of all, can you give us a sense of what tune-in sort of revenue and profitability trajectory has been? I mean, clearly the valuation multiples are attractive, but a sense of what the trend has been in recent years in terms of growth. And secondly, with respect to how it can help with your longer-term ambitions in CAR, Can you just maybe connect that for us and maybe help us understand how TuneIn can contribute to those aspirations that you have?

Okay, thank you. Two good questions. So their sales this year are under $110 million. It's $80 million of advertising, $30 million of subscription. Right now, advertising is growing by 40% year over year. Very strong growth. aggressive advertising model. In terms of trend, they're finishing the second half of the year. So from June till December, their run rate is at 20 million EBITDA. So their run rate right now is at 40 million. So they're really finishing the year strong. So we expect to start the next year very, very good. So excited about that trend. And we expect, again, strong Again, advertising sales growing, but again, 30%, 40%. Right now, the model is really well leveraged. The car. The car for sure is what's most exciting. We are talking to 20 car manufacturers. TuneIn is talking also to 20 car manufacturers. The home run or the holy grail is I would say every car manufacturer wants to monetize their audio system. For years, they were not making money with radio. For years, they never got a penny from XM Sirius. You saw the move about GM taking away Apple CarPlay. You saw the move of Tesla taking away FM. The cars want to monetize that segment. So we believe that we are well positioned to own what we call OEM radio. So I believe that every car manufacturer in the world, from GM, GM, BYD, Ford, Toyota, our friends in Germany, will have their own radio. OEM radio, they'll call it Ford radio, they'll call it Toyota radio, and in there you're going to have the Stingray music channels, just like XM Series, you're going to have the TuneIn player, and you're going to have access to the beautiful Stingray karaoke. So I think the both of us coming together, we're really, really positioning ourselves to be a global dominant player, and I wouldn't be surprised that in the next five, ten years, that Stingray and TuneIn will be embedded in every car manufacturer in the world.

Thanks, Eric. Can I just clarify your comment about EBITDA, the EBITDA run rate at TuneIn? Did you say $40 million? You hit a run rate of $40 million, and are you referring to U.S. or Canadian?

Yeah, U.S. So the run rate for the second half of the year, so from June till December of this year, the run rate is at $20 million. So the run rate at the second half is $20 million actually.

Understood. Okay. And just maybe one last thing on the dividend. I mean, it was a significant increase in the dividend. You know, are you, I mean, how should investors kind of look at this? Are you sort of suggesting that, you know, you want Stingray to be a growth plus income story where there is growth, but also you're the returns to shareholders will remain as strong as opposed to just a sort of a heavy investment theme. I mean, I just wanted to understand that because it's been a while since you raised your dividend. I wanted to understand the signaling here. Thank you.

You know, our deal with TuneIn is increasing our free cash flow by 50%. Our LTM free cash flow is at $1.40. We always said to the market we want to be between $20 to $25. We want to be kept in that range. But right now, with our free cash flow expected to be well above $2, we're still at a very, at 34 cents, we're still at a very low end compared to free cash flow above $2. So we'll see where the business goes. And again, like I'm mentioning, we expect that closing to be at 2.8 of debt EBITDA and to be below 2 by December of next year in the next 12 months. So very accredited deal. Also, I know we don't talk about it much, but Tunin had 200 million of tax losses. So we're recuperating 25 million US dollars of tax losses that we can use starting right now.

Thank you, Harik. I'll pass the line. Thank you, sir.

Thank you. And the next question comes from the line of Drew McReynolds with RBC Capital Markets. Please go ahead.

Yeah, thanks very much. Good morning and congrats on the acquisition. Just a couple of follow-ups here, Eric. Just in terms of advertising and EBITDA, like obviously quite good. On the subscriber side, can you just provide an update on kind of what those revenues or sub-trends look like? And also, can you just elaborate on TuneIn's ad platform and monetization expertise? Just want to better understand what their better mousetrap is relative to your current capabilities?

Very good question. Subscription, the model of TuneIn in the last five years and a great job by management was to stay away from subscription and move towards advertising. We expect right now subscription are decreasing by about 5% per year. Our focus is not on subscription. Our focus is on Monetizing every hour of listenership. And that's why we're seeing such very strong advertising growth of 40%. And that will be for the future. So decreasing subscription, focusing on advertising. What they've developed is they have the reach. They have the ad, they call it an ad stack. I don't want to get into details. But they're able to monetize very well both audio and video. And that's what we're excited. We have over right now, because of our deals with LG and Vizio, what we call backfill, but we don't like it. We call it the advertising network. We have over $100 million of inventory right now that is unsold. So for the first project, and we've already started this morning, TuneIn will help us sell this unsold inventory on our fast channels. Then, as you know, in retail media, We do a great job, but we have over $400 million of unsold inventory in retail media. TuneIn also right now is going to be helping us sell this unsold inventory. And we also have a lot of audio inventory, like we have LG radio, we have our Stingray music app. So we have a lot of audio inventory that also TuneIn and the cars will start monetizing. So we see TuneIn as a great monetizing machine. For Stingray, that can be implemented right away. The positive sell synergies of this deal, we expect them to be anywhere from 20 to 40 million. The margins right now, we can't elaborate, but we're more excited about the positive sell synergies of tune-in selling on our platforms than we are about the OPEX synergies.

Yeah, okay. Now, that's good context. Maybe last one, and then I'll pass the line. Obviously on the broadcast and commercial music, uh, uh, recurrent revenue, uh, you know, very, very strong organic and, uh, the advertising, uh, within that, uh, obviously strong as well. Just, can you just for modeling purposes, uh, kind of level set here is, is this all kind of sustainable here in the Q3, just obviously putting tune in impact aside.

Yeah, that's good. We have to be careful. Q3 last year was also very, very strong. So let's get back after the call for that one. Because last year we had a very strong Q3. So I want to be careful with that. Again, now you can imagine that all of the advertising sales will go in the same line and all subscription of TuneIn will go in the same broadcasting unit. But let's talk offline for that. I agree there will be a lot of modeling to do with the TuneIn deal.

Okay. Thanks very much.

Thanks, Drew. And the next question comes from the line at Jerome Dubru with DataTest. Please go ahead.

Hello, everyone. Thanks for taking my questions. Congrats on what looks like being a fantastic deal so far. You touched, Eric, on the subscription aspect. I'm not going to be putting too much time into that, but I'm wondering, In terms of the general momentum of the platform, if you can maybe discuss other growth metrics, maybe in terms of monthly active users, just to assess the general momentum and appreciating that it seems like this management team has been putting more efforts into margins lately.

You know, one point that's surprising about TuneIn, which we were very, and by the way, we've been talking to TuneIn for the last three years, so this has been a long, long deal in the making, discussion, partnership, So of Tunin's listenership of 600 million, 80% is outside the U.S. 80% of their listenership is outside the U.S. But in terms of revenue, 95% of revenues come from the U.S. market. An average hour in the U.S. will generate 8 to 10 cents an hour. If you look at Europe, Tunin is not getting 0.3 cents because the programmatic advertising system is much more sophisticated in the US and Canada and not as strong in Europe yet. So one of the key strengths here for us is in the future when we start monetizing that 80% of listenership across the world, which we'll be investing, we'll both tune in and we'll need that advertising for the car business. A lot of the cars are in Europe. We have a strong savings account for the next five years for us to increase that 0.3 cents in Europe and the rest of the world and to bring it to the $0.8, $0.10 range of the U.S. So that also is a very exciting growth portfolio for us. And the market will get there. We see the same thing with fast channels. Our revenues per hour are much stronger in the U.S. and Canada and Australia than they are in Europe for now or in LATAM. So we're excited about that growth.

Awesome. Thank you. Second question for me is I want to touch on the second backfill deal that you announced with your results. I'm wondering if we should be expected kind of a similar financial profile on the second backfill deal than what you have been discussing last quarter on the first one.

You know, so with the backfill, I would say we've ran out doubling to tripling our inventory. Like I said, right now our biggest issue is the fill rate. We really need to build that machine that TuneIn has, and so we're excited to see and we'll be able to quickly announce to the market how quickly we'll be able to fill all that inventory that we're getting from our TV manufacturers. We got Vizio, we have LG, we have two more coming on board. And now with the tune-in monetizing machine or their mousetrap, like one of you called it, we're very excited to see how we can increase our fill rate, which is still very low.

Great. And maybe last, a quick clarification for me on the back of Aravinda's question in terms of the run rate of 40 million EBITDA. in the second half of the year. Is there any seasonality dynamics that we should be considering or it's just a great momentum on the EBITDA for them as well?

You know, what happened is that their machine, TuneIn, was able with their... They're so efficient that TuneIn is now selling to third parties. So we help iHeart fill some of their inventory and we help third parties fill their inventories and you'll see deals being announced. So they're so efficient that they're even allowed to sell on third parties and I must say that that trend will not stop because we're getting a lot more third parties approaching us to be their advertising partner and that is a very lucrative business and the more reach you have, the more you get advertisers and that seems to be the model and we're very excited about the prospect of the advertising growth. All right.

Thank you. And the next question comes from Stephanie Price with TIBC. Please go ahead.

Good morning. Thank you. Congratulations on the tune-in acquisition. I just wanted to ask a little bit more about the 10 million U.S. in synergies Sounds like you're expecting significant revenue synergies from the deal. Is this embedded in the 10 million, or is that primarily cost synergies that you're talking about with that?

We're looking at about 10 million in OPEC synergies that will slowly come over time. Just because of the way the companies are structured, as you can imagine, we have a lot of different functions. But what we're most excited are the COGs. Just in music rights, because we're much more of a music company, We have about $4 million in savings in music rights, just because we pay less margin. TuneIn is a third party, so we have big savings on music, and we have a lot of savings we see with app servers. So there's another $5 to $10 million in COG savings, which for us will apply very quickly. So we're excited to establish those two in the next 12 to 18 months. But generally speaking, Tunin is doing great. Their cells are double-digit. Their EBITDA is more than double-digit. I explained the run rate in the second half of the year at 20 million EBITDA. So we're looking at much more of COG savings, a bit of OPEX of certain position because there's duplication, and we haven't monetized yet, but the positive cell synergies that we see from this deal.

Thanks for the call, Eric. And maybe I'll touch on the other acquisition you announced post-quarter end of DMI. Maybe you could give a little bit more color about what that acquisition brings to Stingray's digital media platform.

Yeah, DMI in terms of financial, yeah, DMI, a very small, it's a small token. We told the market $6 million in sales, $2 million EBITDA. What we don't know is the DMI group had a sales force. They have a strong sales force. We have a sales force in retail media. Like we always say, our fill rate is low. So we're excited that their Salesforce, that they were selling only in Walgreen, will be selling in CVS, will be selling in Kroger, will be selling in Albertson and all our other stores. And we're excited. We've already put in the last couple of weeks a lot of our sales in Walgreen. So we're getting a double sales positive. So we're more excited about that synergy, the positive sales synergies, about this deal and also right now we're the only retail audio media in the U.S. and Canada. So we really have a position ourselves. Now our challenge is how do we quickly increase our fill rate and one of the strategies to work with TuneIn's partner and with their national sales force and their sales team. So excited to see how much TuneIn can help monetize all of this

location or inventory we have thank you very much all right thank you cbc thank you and the next question comes from the line of team casey with bmo please go ahead yeah good morning um eric can you talk a little bit about um the monetization you're seeing on tune in now in terms of you know radio stations versus some of the video platforms that are on there, the sports deals, the podcasts. Is this a play on local radio or is it on some of these other platforms? Because I'm presuming that the sports side would be lower margin because of the rights issues and whatnot. And then with respect to the growth, which sounds very strong, is there any investment you have to make in terms of technology or OpEx to drive that that isn't there, that isn't in the model right now?

Hey, so very good question. So they're able to, you know, in music rights, so whenever, when you rebroadcast a radio station, there's no cost of goods sold because you're really just distributing. When you have our music channels like our, the Stingray music channels, we pay about three cents an hour. So they're able to monetize both radio and and they have tune-in channels, which are like 70s and 80s, at about $0.08 to $0.10 an hour. So that for us is great news because we're able to really monetize all that. They're doing it with different, when you go on the app, they have pre-rolls, they have muted videos, and they're able to really well monetize both products. So it's exciting, and we'll get more in details of their different strategy for monetization. So, and no good news, TuneIn has a very extensive force of engineers. They have over like over 80 engineers in their team, about 40 in the US, 40 in Ukraine. They're very sophisticated. This company was built from the Palo Alto area. So I must say very impressive, robust. So for now, the biggest thing is there's not much to do with connecting dirt pipes and they have about like 50 pipes of advertisers. I won't go in the names and all the technology. to our product and our inventory and how we speak to advertisers to explain how they can have access now to the Stingray inventory, our fast channel, retail media. So there is no investment to be done right now in terms of building a special technology project. So it's really just continuing what we're doing already. So that's why it's a quick integration.

Would you not have to compensate the radio stations for the rebroadcast? I don't imagine that would be a huge number, but would there not be some sort of – would they not generate revenue from this?

Yeah, I won't go into it exactly, but the answer is when you rebroadcast, we do pre-rolls, and then it's still the ads of the radio station that plays. But while you're playing, while you're listening to Boom FM in Toronto and you listen to Boom on TuneIn, you have display banners. There's banners and display video. and those display video, they are muted, so you still listen to that channel while you're getting advertising. So that's why it is very, very, their system is very, creates a lot of revenue per hour. Right, okay. Okay, thank you. And I think, Tim, you had a good question. I saw one is, in terms of the owners, TuneIn was owned by, 40, 50 shareholders. It wasn't owned by really by a PI group. Their shareholders were a lot of the big names coming from California and know from Eric Schmidt, a lot of CEOs, CEO of even iHeart was an investor, the CEO of Salesforce, a lot of big names that you would know their names, but not me because I'm not as good. And also good news, also Tom Hanks was one of their shareholders. So I'm happy. I'm supposed to, I will have the chance to meet Tom Hanks. He has a few audio channels with us. So I'll let you know if I ever see Tom Hanks, Tim.

Well, that's really good news. Good luck. All right. Take care.

Thank you. And I'm showing no further questions at this time. I would like to turn it back to Eric Boyko for closing remarks.

Okay. Thank you. I know it's a long call. We have a lot to cover with both the quarter and our two acquisitions. So thank you everyone for your question. And again, the analysts for your support. We talked to a lot of you last night, so you guys really work full time. In summary, we're confident that tune-in acquisition is a perfect fit to further Stingray's growth and its key pillars with significant expertise in ad monetization, and a perfect companion to our in-car product offering. We are looking forward to share our progress in coming quarters. On behalf of the entire Stingray team, thank you for joining us on the conference call. We look forward to speaking with you following the release of our third quarter results for fiscal 2026. Have a great day. Merci tout le monde.

Thank you. And this concludes today's conference call. Thank you all for joining. You may now disconnect.