The so-called streaming wars among the big providers started to heat up in a big way during the worst of the COVID-19 pandemic. Netflix, Amazon, Disney, Apple, and AT&T’s HBOMax have duked it out without a clear winner emerging out of the pack. Today, I want to discuss a lesser-known Canadian streaming stock that has struggling in recent trading sessions. Is this stock worth picking up in the spring season? Let’s jump in.
Boat Rocker Media (TSX:BRMI) is a Toronto-based entertainment company that creates, produces, and distributes television and film content in Canada, the United States, and worldwide. This stock made its S&P/TSX Composite Index debut back in March 2021. Shares of this streaming stock have plunged 25% in 2023 as of close on April 25.
This company released its fourth quarter and full year fiscal 2022 earnings on March 30, 2023. In Q4 2022, Boat Rocker Media reported adjusted EBITDA of $17.2 million – down from $19.0 million in the fourth quarter of fiscal 2021. Meanwhile, net income rose to $5.7 million compared to $3.5 million in the previous year.
For the full year, Boat Rocker achieved adjusted EBITDA growth of 14% to $36.2 million, a record for the company. However, total revenue dropped 48% to $304 million. Some of the television content this streaming service offers includes original programming from Hulu like Girlshow, Slip from The Roku Channel, and big studio staples like The Great Canadian Baking Show and Big Brother Canada season 11.
Shares of this streaming stock is trading in favourable value territory compared to its industry peers. It has achieved profitability and its on track to post strong revenue growth going forward.
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