- Total gaming handle on theScore Bet rises
491% year-over-year -
- Completed U.S. IPO and Nasdaq listing,
raising US$186.3 million to fund growth of North American sports
betting operations -
Score Media and Gaming Inc. (TSX: SCR; NASDAQ: SCR) (“theScore”
or the “Company”), today announced financial results for the three
and six months ended February 28, 2021.
“We achieved record gaming handle and another quarter of solid
media revenue growth in our fiscal 2021 second quarter. The strong
second quarter results highlight theScore’s ongoing momentum and
our users’ active, growing engagement with our mobile offerings,”
said John Levy, Chairman and CEO of theScore. “Second quarter
handle of $81.6 million on theScore Bet grew 491% year-over-year
and 46% over the first quarter. We also recorded our highest-ever
second quarter media revenue, with 17% year-over-year growth driven
by our compelling content as well as our outstanding North American
reach and audience engagement.
“Following the launch of theScore Bet in Iowa in mid-February,
our mobile sports betting platform is now live in four states as
our market rollout continues on schedule. We’re successfully
building our user base and leveraging our media audience, while
simultaneously welcoming new users to our platform as demonstrated
by the year-over-year and quarterly sequential increases in gaming
handle this quarter, including a nearly 200% increase in our New
Jersey handle compared to the year-ago period. Through our recent
agreement with Caesars Entertainment we now have sports betting
market access in Illinois, the sixth most populous U.S. state.
“During the second quarter, we raised US$186.3 million of gross
proceeds through our U.S. initial public offering which we intend
to deploy towards the ongoing build out of our industry-unique
integrated sports betting and media technology platform. The new
capital provides additional resources to further execute on our
strategies to integrate sports betting and content to drive deep
user engagement and expand our market access. We will continue to
enhance our media and betting ecosystem through investments in
technology to further develop user personalization, unique betting
offerings, and in-game prop bets, which are expected to be a
significant driver of U.S. sports betting growth. At the same time,
we are working to expand our access into new U.S. states while
continuing our preparations for the anticipated legalization of
single-game sports wagering in Canada.
“We are very encouraged by the recent momentum in support of
Bill C-218, which would legalize single-game sports betting in
Canada. Our popular brand and dominant Canadian market position
will enable theScore to participate as a market leader in what is
expected to be a very large addressable market, including in our
home province of Ontario.
“Our unique combination of media and betting is a powerful
differentiator in a growing marketplace. We intend to leverage our
position as the only digital sports media company in North America
that operates a sports betting platform to further grow our U.S.
business and capture meaningful market share in Canada when the
market opens. With our fully integrated sports media and betting
experience and technology focus, we are perfectly positioned to
efficiently acquire and engage new customers while driving strong
customer loyalty and attractive margins which will help drive the
long-term enhancement of shareholder value.”
Recent Highlights
- Total Q2 F2021 gaming handle [1] on theScore Bet grew 491%
year-over-year, reaching a record $81.6 million in the quarter.
- Handle was up 46% compared to Q1 F2021.
- Q2 New Jersey gaming handle grew 195% year-over-year.
- Media revenue increased 17% year-over-year to $8 million, a
second-quarter record.
- In March, theScore completed a U.S. initial public offering and
listed on the Nasdaq Global Select Market.
- 6.9 million Class A Shares were sold by the Company at US$27.00
per share, resulting in gross proceeds of US$186.3 million.
- Prior to the U.S. public listing, the Company consolidated its
outstanding Class A Shares on the basis of one new Class A Share
for every ten outstanding Class A Shares; it also consolidated its
special voting shares at the same ratio.
- theScore Bet launched in Iowa in February, bringing the
Company’s base of live U.S. sports betting states to four.
- In March, the Company entered into an Illinois market access
agreement with Caesars Entertainment for mobile sports
betting.
- In March, theScore Bet became an official betting operator of
the PGA TOUR. The content and marketing relationship also makes
theScore Bet the TOUR’s first official betting operator in Canada,
pending the enactment of enabling legislation and regulation and
receipt of all necessary regulatory approvals.
- In December, the Company’s esports platforms served as the
exclusive English language broadcast partner for the League of
Legends’ Demacia Championship in China.
Audience Metrics
- theScore achieved a Q2 record for engagement on its sports
media app. User sessions rose 8% year-over-year in Q2 F2021 to 488
million with users opening the app an average of 125 times a month
each. The Company had 3.9 million average monthly active users on
theScore app.
- theScore’s esports platforms registered 186.5 million total
video views in Q2 F2021. An additional 99,600 YouTube subscribers
were added during the period with total channel subscribers now
exceeding 1.67 million.
- During Q2, theScore’s sports content across Twitter, Facebook,
Instagram and TikTok achieved an average monthly reach of
approximately 88 million. theScore’s TikTok account added
approximately 456,000 new followers in Q2 F2021, with followers now
exceeding 3.1 million.
Financial Results
Total revenue for Q2 F2021 was $5.6 million, with record Q2
media revenue partially offset by negative net gaming revenue [3]
of $2.4 million. Media revenue in the quarter was $8 million,
compared to $6.8 million for the same period last year,
representing a 17% year-over-year increase.
Gaming handle [1] was $81.6 million and gross gaming revenue [2]
was $0.4 million in Q2 F2021. When taking into account promotional
costs and fair value adjustments on unsettled bets, this resulted
in negative net gaming revenue [3] of $2.4 million.
EBITDA loss in Q2 F2021 was $12.9 million compared to an EBITDA
loss of $8.6 million for the same period last year. This was
primarily the result of additional expenses incurred in connection
with the ongoing expansion of the Company’s gaming operations and
costs and professional service fees related to the recently
completed U.S. initial public offering.
Financial Statements and Management’s Discussion and
Analysis
The Company reports its financial results in Canadian dollars,
unless otherwise indicated. Our unaudited condensed consolidated
interim financial statements, accompanying notes, and Management’s
Discussion & Analysis for the three and six months ended
February 28, 2021 are prepared in accordance with International
Financial Reporting Standards (“IFRS”) and are available on the
Company’s Investor Relations page.
Conference Call & Webcast
theScore will host a conference call and webcast at 5:30pm ET
today, Tuesday, April 13. During the call, management will review a
presentation summarizing recent developments that can be accessed
here.
Conference Call Dial-In Toll Free North
America: +1 (844) 925-3583 International: +1 (236) 714-3374
Conference ID: 5097437
The conference call will also be webcast live.
Register now here.
Instant Replay Local: +1 (416) 621-4642 Toll
Free North America: +1 (800) 585-8367 Conference ID: 5097437
About Score Media and Gaming Inc.
Score Media and Gaming Inc. empowers millions of sports fans
through its digital media and sports betting products. Its media
app ‘theScore’ is one of the most popular in North America,
delivering fans highly personalized live scores, news, stats, and
betting information from their favorite teams, leagues, and
players. The Company’s sports betting app ‘theScore Bet’ delivers
an immersive and holistic mobile sports betting experience and is
currently available to place wagers in New Jersey, Colorado,
Indiana and Iowa. Publicly traded on the Toronto Stock Exchange
(TSX: SCR) and the Nasdaq Global Select Market (NASDAQ:SCR),
theScore also creates and distributes innovative digital content
through its web, social and esports platforms.
Forward-looking (safe harbour) statement
Statements made in this news release that relate to future
plans, events or performances are forward-looking statements. Any
statement containing words such as “may”, “would”, “could”, “will”,
“believes”, “plans”, “anticipates”, “estimates”, “expects” or
“intends” and other similar statements which are not historical
facts contained in this release are forward-looking, and these
statements involve risks and uncertainties and are based on current
expectations. Such statements reflect theScore’s current views with
respect to future events and are subject to certain risks,
uncertainties and assumptions. Many factors could cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward looking statements, including
among other things, the enactment of enabling legislation and
regulations in the provinces and territories of Canada to
facilitate online gaming and the enactment of federal legislation
to permit single-event sports wagering (including the timing of
such legislation and regulations being passed and proclaimed in
force (if at all) and the terms and conditions imposed in such
legislation and regulations on participants in the online gaming
industry), the receipt by the Company of all relevant licenses and
approvals, and the rate of adoption and market potential of online
gaming, and those factors which are discussed under the heading
“Risk Factors” in our Annual Information Form as filed with
applicable securities regulatory authorities and available on SEDAR
under our profile at www.sedar.com and as filed with the U.S.
Securities and Exchange Commission and available at www.sec.gov,
and elsewhere in documents that theScore files from time to time
with such securities regulatory authorities in Canada and with the
U.S. Securities and Exchange Commission, including its Management’s
Discussion & Analysis and Management Information Circular.
Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking statements prove
incorrect, actual results could differ materially from the
expectations expressed in these forward-looking statements. The
Company does not intend, and does not assume any obligation, to
update these forward-looking statements except as required by
applicable law or regulatory requirements.
[1] Handle is calculated as the total amount of money bet by
customers in respect of bets that have settled in the applicable
period. Handle does not include free bets or other promotional
incentives, nor money bet by customers in respect of bets that are
open at period end. [2] Gross gaming revenue is calculated as
dollar amounts bet by customers less the dollar amounts paid out to
the customers in respect of such bets which have settled in the
applicable period. [3] Net gaming revenue is calculated as gross
gaming revenue, less free bets, promotional costs, bonuses and fair
value adjustments on open bets.
Score Media and Gaming Inc. Condensed Consolidated
Interim Statements of Financial Position (in thousands of Canadian
dollars) (unaudited) February 28, 2021 August 31, 2020
ASSETS Current assets: Cash and cash equivalents
$
44,721
$
40,116
Restricted cash related to customer deposits
6,366
1,859
Accounts receivable
8,692
5,455
Tax credits recoverable
1,616
1,616
Prepaid expenses, deposits, and other assets
2,869
2,048
64,264
51,094
Non-current assets: Property and equipment
3,470
4,136
Intangible and other assets
26,658
23,477
30,128
27,613
Total assets
$
94,392
$
78,707
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Accounts payable and accrued liabilities
$
15,892
$
10,353
Current portion of loans and other borrowings
407
6,645
Current portion of lease liability
933
908
Current portion of convertible debenture
3,458
-
Other current financial liabilities
111
231
20,801
18,137
Non-current liabilities: Loans and other borrowings
534
740
Lease liability
567
1,042
Convertible debenture
28,036
29,584
29,137
31,366
Shareholders' equity
44,454
29,204
Commitments Subsequent event Total liabilities and
shareholders' equity
$
94,392
$
78,707
Score Media and Gaming Inc. Condensed Consolidated
Interim Statements of Comprehensive Loss (in thousands of Canadian
dollars, except per share amounts) (unaudited) Three months
ended, Six months ended February 28, 2021 February 29, 2020
February 28, 2021 February 29, 2020 Revenue Media Revenue
$
7,995
$
6,848
$
18,574
$
16,093
Net Gaming Revenue
(2,402
)
(195
)
(4,442
)
(222
)
5,593
6,653
14,132
15,871
Operating expenses: Product development and content
3,171
2,674
5,970
5,256
Sales and marketing
5,179
4,158
10,046
9,649
Technology and operations
4,765
4,249
10,093
7,407
General and administration
5,405
4,197
10,224
7,017
Depreciation and amortization
1,448
1,312
2,832
2,525
19,968
16,590
39,165
31,854
Operating loss
(14,375
)
(9,937
)
(25,033
)
(15,983
)
Finance expense, net
(3,190
)
(517
)
(5,205
)
(1,688
)
Loss before income tax expense (recovery)
(17,565
)
(10,454
)
(30,238
)
(17,671
)
Deferred income tax expense (recovery)
-
-
-
(3,107
)
Net loss
$
(17,565
)
$
(10,454
)
$
(30,238
)
$
(14,564
)
Other comprehensive income Foreign currency translation
differences from foreign operations
535
(140
)
854
(124
)
Total comprehensive loss for the period
$
(17,030
)
$
(10,594
)
$
(29,384
)
$
(14,688
)
Loss per share - basic and diluted
$
(0.45
)
$
(0.29
)
$
(0.88
)
$
(0.44
)
Score Media and Gaming Inc. Condensed Consolidated
Interim Statements of Cash Flows (in thousands of Canadian dollars)
(unaudited) Six months ended February 28, 2021 February 29,
2020 Cash flows from (used) in operating activities Net
income (loss) for the period
$
(30,238
)
$
(14,564
)
Adjustments for: Depreciation and amortization
2,832
2,525
Stock based compensation
1,397
634
Interest accretion on lease liabilities
48
72
Interest accretion on loans and other borrowings
30
-
Interest accretion on convertible debenture
3,621
2,036
Unrealized foreign exchange (gain) loss
1,376
-
Income tax recovery
-
(3,107
)
(20,934
)
(12,404
)
Change in non-cash operating assets and liabilities: Accounts
receivable
(3,237
)
670
Restricted cash related to customer deposits
(4,632
)
(986
)
Prepaid expenses, deposits, and other assets
(841
)
(1,170
)
Accounts payable and accrued liabilities
5,680
(1,054
)
Other financial liabilities
(116
)
66
(3,146
)
(2,474
)
Net cash used in operating activities
(24,080
)
(14,878
)
Cash flows from financing activities Exercise of stock
options
403
100
Payment of lease liabilities
(496
)
(426
)
Payment of loans and other borrowings
(6,475
)
-
Payment of convertible debenture
(1,711
)
-
Issuance of convertible debenture, net of transaction costs
-
37,272
Issuance of shares, net of transaction costs
42,834
-
Net cash from in financing activities
34,555
36,946
Cash flows used in investing activities Additions to
property and equipment
(189
)
(421
)
Additions to intangible and other assets, net
(5,557
)
(4,218
)
Net cash used in investing activities
(5,746
)
(4,639
)
Increase in cash and cash equivalents
4,729
17,429
Net effect of exchange rate fluctuations on cash
(124
)
59
Cash and cash equivalents, beginning of period
40,116
4,035
Cash and cash equivalents, end of period
$
44,721
$
21,523
Three Months Ended Six Months Ended February 28, 2021
February 29, 2020 February 28, 2021 February 29, 2020 Net
loss for the period
$
(17,565
)
$
(10,454
)
$
(30,238
)
$
(14,564
)
Adjustments: Depreciation and amortization
1,448
1,312
2,832
2,525
Finance (income) expense, net
3,190
517
5,205
1,688
Deferred income tax (recovery)
-
-
-
(3,107
)
EBITDA
$
(12,927
)
$
(8,625
)
$
(22,201
)
$
(13,458
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210413006110/en/
Investor Relations Alvin Lobo Chief
Financial Officer Score Media and Gaming Inc. Tel: 416-479-8812
Email: ir@thescore.com Richard Land, James Leahy JCIR Tel:
212-835-8500 Email: scr@jcir.com Media
Relations Daniel Sabreen Director, Communications Score
Media and Gaming Inc. Tel: 917-722-3888 ext. 706 Email:
dan.sabreen@thescore.com
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