Press star zero for the operator. Also note that the call is being recorded on Wednesday, February 7th, 2024 . Now I'd like to turn the conference over to Mathieu Péloquin. Please go ahead.
[Foreign language] . Good morning, everyone, and thank you for joining us for Stingray's 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 Trahan, CFO, will be presenting Stingray's 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 SEDAR. 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 SEDAR. 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 Stingray's 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.
Merci, Mathieu. Good morning, everyone, and welcome to our third quarter conference call for fiscal 2024. Stingray delivered exceptional and historical third quarter results, surpassing CAD 100 million in revenues mark for the first time in the company's existence, while generating adjusted EBITDA of CAD 38.6 million and adjusted free cash flow of CAD 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 from the U.S. market has been remarkable, with overall Stingray revenue, 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 listening hours sequentially to 29 million hours through the integration of 18 new Stingray channels on Samsung TV Plus in the U.S. 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 certainly grow for the years to come. Turning to in-car entertainment, the initial deployment of Stingray Karaoke in 300,000 cars in BYD, the biggest EV car manufacturer in the world, is steadily progressing, and we're further expanding 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 device worldwide. Equally important, our strategic decision to reduce our investment in B2C while prioritizing B2B partners, has improved the bottom line for Stingray's SVOD business for fiscal 2024. Altogether, revenues from broadcasting and commercial music business increased 21% to CAD 65.6 million in the third quarter of 2024, while radio revenues are stable year-over-year at CAD 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 three in the third quarter, as we accelerate the repayment of our credit facility. We're 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 our CFO, Jean-Pierre, for the financial overview.
Merci, Eric. Good morning, everyone. Revenues reached CAD 120.3 million in the third quarter of fiscal 2024, up 12.4% from CAD 89.2 million in Q3 2023. The increase was largely due to growth in retail media advertising and FAST channel advertising revenues. Revenues in Canada improved 3.1% to CAD 51 million in the third quarter of 2024, due to the strength of retail media advertising. Revenues in the United States grew 39.7% year-over-year to CAD 37.1 million in 2024, again, reflecting stronger retail media advertising and FAST channel revenues. Revenues in other countries decreased 7.8% to CAD 12.2 million in the most recent quarter. The year-over-year decline was caused by lower audio channel revenues, as well as less in-store commercial revenues.
These factors were partially offset by a positive foreign exchange impact. Broadcasting and commercial music revenues increased 21.2% to CAD 65.6 million in the third quarter of 2024. The growth was primarily driven by higher retail media advertising and fast channel revenues. Radio revenues, meanwhile, decreased 1.3% to CAD 34.6 million in Q3, as local and national agency airtime advertising dropped year-over-year, partially offset by an increase in local direct advertising revenues. In terms of profitability, consolidated adjusted EBITDA improved 12.2% to CAD 38.6 million in the third quarter, from CAD 34.5 million in Q3 of last year. Adjusted EBITDA margin reached 38.5% in Q3 2024, compared to 38.6% in the same period in 2023. The growth in adjusted EBITDA was mainly due to higher revenues.
The decrease in EBITDA margin is due to decrease in adjusted EBITDA in the radio segment. By business segment, broadcasting commercial music, adjusted EBITDA increased 23.6% to CAD 27.9 million in the third quarter of 2024. The year-over-year increase can be attributed to an improved gross margin and higher revenues. Adjusted EBITDA for our radio segment decreased 7.1% year-over-year to CAD 12.3 million in the third quarter of 2024. The decrease was primarily due to a slight revenue decline, combined with higher regulatory fees. In terms of corporate adjusted EBITDA, it amounted to a negative CAD 1.6 million in the quarter. Higher compensation compared to the current spending periods.
Stingray reported net income of CAD 9.1 million or CAD 0.13 per diluted share in the third quarter of 2024, compared to CAD 12.9 million or 19 cents per diluted share in Q3 2023. The decrease was mainly driven by an unrealized loss on derivative financial instruments and loss on deferred share unit expenses related to a share price increase. These factors were partially offset by higher operating results and a lower income taxes. Adjusted net income reached CAD 18.5 million or CAD 0.27 per diluted share in Q3 2024, compared to CAD 16.5 million, with CAD 0.24 per diluted share in the same period of 2023. The increase can mainly be attributed to higher operating results, partially offset by a greater loss on foreign exchange compared to the third quarter of 2023.
Turning to liquidity and capital resources, cash flow generated from operating activities totaled CAD 30.9 million in Q3 2024, compared to CAD 24.6 million in Q3 2023. The year-over-year improvement was mainly due to the non-recurring recovery of income tax from radio and a higher operating results, partially offset by a greater negative net change on non-cash operating items. Adjusted free cash flow amounted CAD 32.7 million in Q2 2024, compared to CAD 18.1 million in the same period in 2023. The increase was mainly related to the non-recurring recovery of income taxes from the radio segment and a better operating results.
From a balance sheet standpoint, Stingray had cash and cash equivalents of CAD 7 million at the end of the third quarter, subordinated debt of CAD 25.6 million, and credit facilities of CAD 362.9 million, on which approximately CAD 61 million was available. Total net debt at the quarter end stood at CAD 381.5 million, down CAD 9 million from the last quarter, as we intensified payment on our credit facilities. Combined with increased adjusted EBITDA over the last 12 months, our net debt to pro forma adjusted EBITDA ratio dropped to 2.99x at the end of the third quarter. As Eric mentioned earlier, we intend to bring it down further in the upcoming quarters. It represent a key priority for the management team and this higher interest rate environment.
Finally, we repurchased 372 shares in the third quarter of 2024, or CAD 1.9 million, compared to 341,000 shares for CAD 1.4 million in the third quarter of 2023. This ends my presentation, and I will now turn the call back to Eric.
Okay, thank you, JP. Thank you for the summary, and happy to take the calls from our friends, the analysts. Passing it over back to you guys.
Thank you. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your touchtone phone. You will then hear a three-tone prompt acknowledging your request. If you would like to withdraw from the question queue, simply press star followed by two. If you're using a speakerphone, we do ask that you please lift the handset before pressing any keys. Please go ahead and press star one now if you have any questions. Your first question will be from Adam Shine at National Bank Financial. Please go ahead.
Thanks a lot. Good morning. Eric, can you talk about some of the categories in advertising that might be helping to drive some of that jump in retail media or any other factors driving the increased momentum? And then also maybe talk about some of the early trend in your Q4 related to retail media. Thanks.
Yeah, good question. So, you know, our retail, our advertising sales are growing by retail media and also by the FAST channels or connected TVs. So for sure, we're expanding our footprint, and the footprint helps us have more inventory. We're increasing our fill rate. And for us, the biggest categories for sure is the pharma market. Anything related to vaccines, we're very strong in the pharmacies in the U.S. and in Canada. So we see that trend going forward. But most impressive is our success with the connected TVs. You know, our run rate is now at 40 million hours that we expect per quarter. Roughly, we sell about CAD 0.30 of advertising per hour and CAD 0.15 Canadian net. So you've got a run rate there that we report net revenues of CAD 6 million.
So, last year, we did CAD 4 million, this year we're doing CAD 12 million, and next year, our run rate is anywhere close to CAD 24 million. So we're very excited about the connected TVs also.
Okay. And, you know, the expanded bank mandate that you announced back, I think in the fall, was not in Q3. Can you talk about how it might be ramping in Q4 and into your fiscal 2025?
Yeah, so good point. So, we're really focusing on music and digital signage and banks. It's a big vector for us. We're strong in Mexico, we're strong in Latin America, and now we're focusing in North America. So, agreed, that contract that we have with our friends at BMO is starting in January. So we'll see the numbers picking up, and it's a five-year deal, so very happy to be involved in all the branches across North America. That's over 2,000 branches, so happy to have new partners and also working hard to with National Bank.
Okay, thanks for that. Last question. You know, it was noted that the regulatory fees were moving up in radio, hence the margin contraction. Is there any potential offsets that you might explore to try and, you know, mitigate some of that impact?
Yeah, we got, as it is in music, you get with the new NAFTA agreement that was negotiated between Canada and the U.S., our fees for Re:Sound increased by CAD 1.2 million. So it is what it is. We can't really go against the agreement between NAFTA and Canada. But the good news is, every unit is doing well, and even radio right now, like I said before, we're very strong in local sales. I think some of our bigger players that are more involved in TV have less focus on radio, so it's giving us an edge to gain market share in every local region. And even this quarter, we're seeing positive organic sales from radio. So, and we're getting closer and closer to 2020, which was a pre-COVID.
So interesting to see how we're winning on the local side, on radio, but there's no way to offset CAD 1.2 million of rights fees. No, that's it. Sometimes you win, sometimes you lose, but in this case, it was decided.
Okay, I'll leave it there and I'll queue up. Thanks for that.
Thanks, Adam.
Next question will be from Aravinda Galappatthige at Canaccord Genuity. Please go ahead.
Good morning. Thanks for taking my question, and congrats on the results. In terms of the strength in retail media, just going back to that, can you just break it down in terms of sort of agency and direct? I know that you're getting some traction on that front as well. Specifically in the U.S., I mean, maybe just talk to some of the trends that you're seeing as sort of the macro backdrop seems to improve there.
Yeah, our biggest issue for us is not—it's we have a lot of inventory that we have available, so our fill rate is still for us to improve. It's really a mix between direct and agencies. I must say it's a work in progress, but again, we need to evangelize the market. People are used to TV, connected TVs, radio, you know, but they're not used to in-store media. So it's something that will have to work for a period of time, but for sure, when you start from a small number, your gains are very strong. So, I—we expect the numbers to... Again, we're increasing our inventory, we're increasing our footprint, and we're increasing our fill rate. So, a lot of upside, and this is for years to come.
So it's not a one-quarter project. It's for years of work for us to achieve and to sell the inventory and evangelize the market.
Understood. Thank you. And then, on the in-car segment, I think you'd alluded to sort of the 300,000 starting point for BYD. Can you just clarify how that ramps up? Is 300,000 sort of should we kind of work out the economics from 300,000 as a starting point, or is that sort of a year-end exit point? I just, I, I wasn't clear on that. I was wondering if you can clarify.
Yeah, it's a good question. So for us, interesting, so, BYD is our fourth car deal. They manufacture 4 million cars a year, but they manufacture in China, they manufacture in many countries. So we're-- you know, our products are mostly available in countries that we have licensed product. So it's gonna-- it's difficult for us, even for us now, to know how many cars we're gonna be in. As, for example, we're not in China right now, for many reasons, in terms of rights, for music. So, it's gonna be something that we'll have to see quarter by quarter.
So sorry, not to be able to give you more details, but, it's really gonna be interesting how BYD succeeds, you know, right now we're in Israel with them, we're in Uzbekistan, Thailand, Singapore, and Latin America. So it's gonna be interesting how they win all those markets. But for now, I must say it's all new countries for us, so it's a bit of a. We're also watching their success or their expansion.
Okay, great. Thank you. Last question on the subscription revenues within BCM segment. I mean, it continues to be stable, you know, obviously, despite your legacy television component. Any kind of color on that? I mean, is it sort of the other segments that are kind of offsetting that, or are you seeing some kind of stability there? As we kind of look to model that out, I was wondering if there's any commentary that you can share.
No, a good point. So for sure, we're gaining a lot with our friends at Amazon. We're launching in—I think Amazon will launch in 10-12 new countries, so that's exciting. Singing Machine is doing very well with the karaoke machine. But on the opposite side, some of our cable SVOD, as cable companies lose customers, we also get less subscription. So it's gonna be a nice growth, but it's gonna be a bit of a pivot until we pivot from the cable industry more to Amazon and over-the-top. And also, though, we reduced, and you can see in the OpEx, specifically our investment in B2C, post-COVID, because the market was changing.
We're also seeing less subscribers on B2C, but, again, more profit for us, more of the doubt, because our focus is more on B2B partnership.
Thank you very much. I'll leave it there.
Thank you.
Next question will be from Drew McReynolds at RBC. Please go ahead.
Yeah, thanks very much. Good morning. Okay, just a couple of follow-ups here, on Aravinda's question. Just, Eric, on the pivot from kind of B2C to B2B and SVOD, you know, obviously, that's been ongoing for a while now. You know, where are you on kind of that, that journey? Are, are you kind of close to sort of migrating, you know, most of what you want to do, or is, is this kind of a, a longer tail?
No, a good question. I, I think we even know, for sure, on, on the B2C side, when you stop, user acquisition, like we did because there was, there was no more return on investment. And we're seeing all our competitors, because we get to, you know, we get to see a lot of our competitors, they're all having a hard time on the B2C front, so it was the right decision. So, you know, the B2C revenues are down closer to CAD 15 million right now, and that's decreasing by about 15%-20%. So it's CAD 15 million out of CAD 360 million of sales. But again, we, we got part of the B2C that's decreasing, and then in that unit, we've got Singing Machine, which is our partner, and that one is increasing by 30%-40%.
So I would say, I would say stable, stable for the next few quarters. The offset of Singing Machine with the downside of a user acquisition on our friends from Apple's.
Okay. Okay, now, that's, that's actually very helpful. On the connected car, I think last quarter you alluded to three or four kind of offerings that you have, like the karaoke, the music, I think trivia, and obviously Calm. Now, what's the plan to expand that or is that kind of what you see as kind of the core offering, at least in the near term?
Yeah. So interestingly, right now, for the car, we're-- I think, you know, I think we said it to the board, we're by far the number one B2B sales team in the world. At CES, we met with every car company. When I say every, from Hyundai to every European car, to Ford, GM, we're really engaged in a lot of these different models. Our four key products is karaoke, music, Stingray Music, Calm Radio, and Trivia, and we're really focused on the audio segment. So for now, most of the tuning is done while driving, 99%, and you can watch a video while driving a car. So we have the advantage of being the number one key partner for audio in cars. Interesting, a lot of different models.
The first model is a CPS model. We have the advertising model. There's also a transactional model. I must say that the car business is, you know, it is the holy grail of distribution, and it's gonna be interesting how all the car companies pivot over the next few years. The good news is we're in talks with every one of them, so we're very excited about our penetration with this market, but this is a long-term play. The OEMs, when they plan, they plan from 2026 to 2038. So it's not something that, you know, we'll get free cash flow like we get on the TV business in one month. So it's a long-term plan, but for investors, it makes us very sticky.
And we're even planning right now, believe it or not, to do karaoke microphones in every car in the world. So when you buy your EV car, you're gonna get a microphone to sing karaoke. I know it sounds a bit, but it's—there's a big demand from every car manufacturer to include our mics. So, interesting.
Yeah, I mean, that would certainly be interesting in my car, I can tell you that. So two follow-ups here. First, sorry, I may have missed this in JP's opening remarks, just in terms of free cash flow priorities, presumably it is just debt repayment, is that? And then the second question, are you able to maybe narrow in the, you know, strong, quote unquote, "revenue growth" for fiscal 2025? Like, what kind of characterization is strong in terms of single digit, double digit, low, mid, high? That kind of granularity would be helpful. Thank you.
Yeah, thanks for the question. So regarding free cash flow, as you can see, we've. It's pretty, you know, we had an incredible quarter of CAD 32 million. CAD 4 million of that was a tax refund, so. But still, our ability to generate free cash flow from EBITDA is strong. Our CapEx are lower. We expect CapEx to stay low. We're at 2.99. Well, you know, right now, we've already, in this quarter, in the first five weeks, we paid CAD 50 million of debt. So today we're standing at 2.86. I think we'll be below 2.8, and I think we'll be, our goal is to be between 2.2 and 2.5, so we'll be below 2.5 in the next few quarters.
So, our new EBITDA is really generating high cash flow, and the connected TV business is, again, high, high cash flow business with very low OpEx or almost zero OpEx and zero CapEx. So that's good. And in terms of... No, we expect to have a double digit, well, in English, we say high teens. So we expect to have double digit growth for the next, for this year and for next year, based on the current agreement in place. Even if a lot of it is advertising, it is pretty much recurring, so we pretty much have, you know, we added CAD 4 million of incremental EBITDA this quarter, and that CAD 4 million is pretty much recurring. So let's see how, unless something major happens in the market, where right now the management team feels very good.
Okay, just, sorry, Eric, just to clarify that last point. So in terms of your, your commentary in the press release on strong revenue growth for fiscal 2025 consolidated, that's what you're referring to in terms of double digit?
For me, again, high teens, I don't wanna say it, but, like, you know, high teens. But again-
Yep.
this for the B2B, this for the broadcasting and the commercial music. Radio, for us, we expect radio to be stable to +2%. So, radio, very stable, green, and broadcasting and commercial, high teens.
Okay, thanks very much for all that.
Hey, thank you.
Next question will be from Jérome Dubreuil at Desjardins. Please go ahead.
Hi, bonjour tout le monde. Thanks for, for taking my questions. Just on the retail media to start, I, I'm wondering about the sustainability of the growth. Obviously, very strong quarter, and congrats for, for the big CAD 100 million milestone. Just wondering, what, what's been the source of success in the quarter? Is it the Mood partnership, the, the more efficient sales force? And do you feel this is a, an inflection point in terms of growth or, or, or maybe something that you see being sustained? Obviously, probably not gonna model 80%+ growth in the next few quarters, but, if you can provide color on this, please.
Yeah, so a good question. So for sure, it was an incredible quarter, so no, I would not model 86%. You know, we're. I think that we can expect. Again, we're always said to the market, 40% growth, so I think we're still optimistic about that. The big component that's a big surprise for us is our success with the audio channels on the connected TVs. So last year, we did 13 million hours in January, February, March, or in Q4, and this year we expect to do 40 million. So the FAST channels or connected TVs, those are growing by 300%. And like I mentioned before, we did 4 million last year. We're gonna do 12 this year, and next year we'll do 24 million-28 million.
So that part is really is recurring, and so that's growing by 300%. So and we got a lot more partners to launch. So we're very excited about the connected TVs and the free cash flow coming from that product is the extremely high. So I don't wanna say too much, but I'm saying it's just gonna be a cash flow machine for the years to come. And Samsung announced in December that their connected TVs revenues were up 65%. So we're dealing with a market that is growing, you know, the opposite of the cable industry. So it's gonna be and it's gonna grow for the next multiple years. So interesting to be on that platform.
So both combined makes us a very large growth, but I think 80% is too high, and closer to 40%.
That's great. Just on your comments on leverage, you said your goal is to be between 2% and 2.5%. Correct me if I'm wrong, but I think maybe last time you provided an update on that in terms of longer-term goal was to be closer to 2.5%-3%. Is that a kinda change in priority and deleveraging targets, or maybe I did not remember correctly?
No, no, it's for us, you know, what changed, like for every entrepreneur or for every business, is the cost of capital. Interest rate, you know, when interest rate were at 1%-1.5%, we were happy to 2.5%-3%. With interest rate now closer to 6.5%, I think where we wanna be between 2%-2.5%. We see positive sign of decreasing interest. The good news is we're able to deduct it from income tax, so that's the good news. But I think, you know, for us, a good target will be around 2.5%, and I think that we'll achieve in the next few quarters.
2.5%, I think, is a good number, and depending on what interest rates do, if interest rates go lower, then we could be more aggressive. But we're, I think in terms of, capital structure, we're very happy, and I think we're able to show our deleveraging.
That's great. And the last one for me, just in terms of the next quarter, typically would be, you know, seasonally low, but meanwhile, your business is changing rapidly. So is seasonality changing a bit, with the revenue mix evolving? Just thinking of how we should think about next quarter.
Yeah. So for us, on the broadcasting and commercial music side, again, a strong quarter with high double digits or high teens, so very, very comfortable. Radio, for sure, Q4 or January, February, March, is the smallest quarter of the year, so it is seasonal. So you can see the trends over the last, since we've owned radio. So, but again, broadcasting strong, radio, again, strong, good organic, but low season for radio.
Understood. [Foreign language] .
Merci, Jérome.
Next question will be from Scott Fletcher at CIBC. Please go ahead.
Thank you, and good morning. I wanted to again ask on the connected TV. It sounds like the growth there and into next year is expected to be pretty significant. Can you break down where that growth is coming from? Is it mostly new partners? Is it growth in hours? Like, can you—is it possible for you to sort of disaggregate where that strong growth is going to come from on the Connected TV?
Yeah. So for now, I must say we're very strong with the TV manufacturers. Now, we just finished a tour in Asia. We did Korea, Japan and China in October. And I must say, you know, from Samsung to LG to Vizio, all the different manufacturers around the world, Sony, so we're in every one of them. And I think our big bet was to tell them, sorry, was to tell them that we feel that the audio channels, like we have on pay TV, is a big success. And I think now, and they're TV manufacturers, so they always told us, "Oh, we want video, we don't want audio." But we were able to convince Samsung and LG, and the success is outstanding.
I think every TV manufacturer in the world, I think Roku, Pluto, all of these Connected TVs, will take our audio channels and our music products. We're very excited about the future of that trend for the next four years to come.
Okay, thanks. And then, I this may be looking a little bit too far out, but it does seem like you're going to pretty comfortably get below those leverage targets, at least by the end of next year. Like, looking out, do you have a sense of what the capital allocation priorities are after you do sort of get the debt below your target range?
Yep. Sorry, a bit of a dry cough. Yeah, good question. So yeah, we're getting to a point, I must say, that very good question, that we had a good discussion on the board yesterday. Because we feel that with our free cash flow coming on next few quarters, we're gonna be very close to or below 2.5, and even looking to be, if things are good, even closer to 2. So there'll be a good discussion to have, and even I guess we'll be calling you guys, we'll be calling our analysts about, you know, what's the best capital allocation.
In terms of acquisition, it's still, even if the market has gone a bit, interest rates are higher, a lot of companies are asking for high valuations, so we have to sit and wait, and we have strong organic sales. So it's gonna be a good, a good debate for our June meeting. What do we do with our capital allocation? Meaning, you know, more N CIB, more debt repayment, or maybe even looking at, at dividends. So, it, it's good to be in a position to be able to ask ourselves that question.
Yeah. So I, I agree that it, it's the right position to be in. I'll leave it there. Thanks for the answers.
Thanks, Scott.
Ladies and gentlemen, a reminder to please press star one on your touchtone phone if you would like to ask a question. Your next question is from Tim Casey at BMO. Please go ahead.
Yeah, thanks. Good morning. Eric, could you clarify your comment on strong revenue growth and stable margins in fiscal 2025? What are you talking about? Can you just give us some clarity and maybe quantify what kind of margin range you're talking about? Another question I had was, just, you know, you've invested a little bit more in the Singing Machine. Can you just add some color around that? Is that, you know, how big is that entity? Do you have a path to control? Do you want to control it, or is that just a joint venture partner? Thank you.
Tim, thank you very much. Both good questions. So, yeah, so we're in terms of growth, we expect to have, again, high teens or double-digit, for next year. A lot of our contracts are, Samsung, and some of our deals only started in December, so we'll get the upswing for the next 12 months. Our deal with the banks is also starting in January, so we're gonna get the upswing for the next 12 months. So we're in a very good position, so happy about that. And I must say that on the new business this year, we estimate we're adding about CAD 25 million in broadcasting, that generated CAD 60 million in new EBITDA. So our new EBITDA, our new, our new sales are generating, almost 60% EBITDA margin.
So, it's interesting to see how this moves along, but for sure, the connected TVs, the retail media, and all of the new business we're doing is high EBITDA margin. So very excited for 2025. And also, the other news is our OpEx are under control, as you can see. So we're able to have high growth without building a new factory or without having to hire, like, hundreds of employees. Singing Machine, very good question. Yeah, Singing Machine is purely a joint venture. They're the largest manufacturer of karaoke machines in the world. I must say, they do great products. We're the software provider. Their new Wi-Fi machine is very strong.
And for us, it's a strong partnership where, you know, can't go in details, but we make a lot of money or a lot of revenues from the licensing of karaoke. But it is purely a joint venture. There's no intention for us to be in the manufacturing business. And also, it's a good example, the microphones that we spoke in for Honda and for BYD and Tesla, every car manufacturer wants the microphone. It will be Singing Machine building the microphone. It won't be us. We're really a music licensing distributor, and so. But we're happy to have them as a key partner.
Can we go back to the margin question? What, what kind of margins are you thinking about for 2025, would you be comfortable with on a consolidated basis?
Yeah, consolidated. But on the broadcasting and revenue, for sure, above 40%, the margin will just increase with these new categories. The radio business, we see very stable. Whatever margins we're having right now, for sure, we had a little setback from Re:Sound, that affected our margins, but radio, we feel to be very stable for the next few years, and broadcasting above 40%. And we, we see that our EBITDA margin increasing slightly, but improving, by 1% or 2% every year based on our model. So, we're in a good position. So we're very happy about, our EBITDA margins and the growth.
Thank you.
Thank you, Tim.
At this time, we have no other questions registered. Please proceed.
All right. Hey, thank you again. Thank you for all the analysts, for your time and your commitment towards public companies. I think it's important to have this ecosystem, so we appreciate your questions and your attention. And hopefully, we can have a few more good quarters like this and spend time together. So merci tout le monde, have a great week.
Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending, and at this time, we do ask that you please disconnect your lines. Enjoy the rest of your day.