TORONTO, Oct. 17, 2018 /CNW/ - theScore, Inc. (TSX
Venture: SCR) ("theScore") today announced the financial results
for the three and twelve months ended August
31, 2018 in accordance with International Financial
Reporting Standards ("IFRS").
Total revenue for the twelve months ending August 31, 2018 grew to $27.7 million, versus $26.3 million in F2017. Revenue for Q4 F2018 grew
to $5.1 million versus $4.8 million in the same period the previous
year.
EBITDA loss for the twelve months ending August 31, 2018 improved to $2.4 million compared to a loss of $5.9 million in F2017. EBITDA loss for Q4
F2018 was $2.4 million, compared to a
loss of $1.9 million for the same
period the previous year. EBITDA loss in Q4 was due to a
combination of increased facilities, administrative and other
expenses, including expenses relating to U.S. sports betting
business development activities, as well as advertising sales for
the quarter which, despite year-over-year growth of 6%, were below
expectations.
Monthly active users of theScore mobile app on iOS grew by 12.5%
in Q4 F2018 compared to the same period the previous year,
including growth of almost 17% in July, driven in part by
theScore's coverage of the 2018 FIFA World Cup.
As a result, total average monthly active users of theScore
mobile app grew by 5% to 3.7 million in Q4 F2018 versus 3.5 million
for the same period in F2017, with iOS growth partially offset by
lower monthly active users on Android. Total average monthly app
sessions per user for theScore app on iOS and Android for Q4 F2018
were 70 compared to 73 for the same period last year.
Q4 F2018 highlights included:
- Total video views of theScore's esports content reached almost
33 million for Q4 F2018, year-over-year growth of 117%, with its
YouTube channel surpassing 400,000 subscribers as theScore
reinforced its position as the leading independent provider of
competitive gaming coverage.
- theScore's content reached approximately 55 million users per
month in Q4 F2018 across its social channels, serving to further
amplify theScore brand with sports fans globally.
- theScore continued to pursue opportunities relating to the U.S.
Supreme Court repeal of the Professional and Amateur Sports
Protection Act (PASPA), which allowed individual states in the U.S.
to explore legalized and regulated sports betting models. As part
of these ongoing initiatives, the Company appointed senior
interactive gaming and sports betting executive David Wang as a Senior Advisor.
theScore Founder and CEO John
Levy said: "This was a very strong quarter for audience
growth for theScore, with positive app user numbers supported by
record-breaking reach across our social and emerging platforms. Our
esports content also reached new heights, smashing through 400,000
subscribers on our YouTube channel and more than doubling total
video views in one year - a testament to the incredible content
being produced every day.
"On top of this, we continued to pursue opportunities relating
to the legalization of sports betting in the United States. We see exciting near-term
and long-term opportunities for theScore thanks to the unique
advantages of our large and engaged audience and our expertise in
delivering great mobile sports experiences."
Board of Directors Update
The Company announced that
Kirstine Stewart is stepping down
from theScore's Board of Directors with immediate effect after
accepting a position with the World Economic Forum in Geneva, Switzerland. Ms. Stewart had been a
member of theScore's Board since June
2016. Management and the Board of Directors thanks her for
her contribution and wishes her every success in her new role.
theScore will host a conference call at 4:30pm ET on Wednesday, October 17 where
management will review the Company's Q4 and Year End F2018 results,
followed by a Q&A session:
Conference Call Dial-In
Toronto: (+1) 416 764 8688
Toll Free North America: (+1) 888 390 0546
The conference call will also be webcast live.
Register now here.
Instant Replay
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888
390 0541
Playback Passcode: 291628 #
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About theScore Inc.
theScore's mission is to create
highly-engaging digital products and content that empower the
sports fan's experience. Its flagship mobile app 'theScore' is one
of the most popular multi-sport news and data apps in North America, serving millions of fans a
month. The Company also creates innovative digital sports
experiences 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 the
Company's 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, those which are
discussed under the heading "Risk Factors" in the Company's Annual
Information Form and Short-form Prospectus as filed with the TSX
Venture Exchange and available on SEDAR at www.sedar.com and
elsewhere in documents that theScore files from time to time with
securities regulatory authorities. 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.
theScore,
Inc
|
|
Consolidated
Statements of Financial Position
|
|
(in thousands of
Canadian dollars)
|
|
|
|
|
As at
August 31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
6,347
|
|
$
|
10,114
|
|
Accounts
receivable
|
5,839
|
|
5,578
|
|
Prepaid expenses and
deposits
|
1,078
|
|
1,238
|
|
13,264
|
|
16,930
|
Non-current
assets:
|
|
|
|
|
Property and
equipment
|
1,453
|
|
1,789
|
|
Intangible
assets
|
6,074
|
|
6,292
|
|
Tax credits
recoverable
|
1,616
|
|
1,616
|
|
9,143
|
|
9,697
|
|
|
|
|
Total
assets
|
$
|
22,407
|
|
$
|
26,627
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
3,710
|
|
$
|
2,801
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Deferred lease
obligation
|
415
|
|
490
|
|
|
|
|
Shareholders'
equity
|
18,282
|
|
23,336
|
|
|
|
|
Commitments
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
|
22,407
|
|
$
|
26,627
|
theScore,
Inc
|
|
Consolidated
Statements of Comprehensive Loss
|
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
Years ended August
31,
|
|
2018
|
|
2017
|
|
|
|
|
Revenue
|
$
|
27,743
|
|
$
|
26,348
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Personnel
|
16,212
|
|
16,855
|
|
Content
|
1,771
|
|
1,746
|
|
Technology
|
2,906
|
|
2,478
|
|
Facilities,
administrative and other
|
6,200
|
|
6,050
|
|
Marketing
|
2,490
|
|
3,585
|
|
Depreciation of
property and equipment
|
418
|
|
481
|
|
Amortization of
intangible assets
|
3,391
|
|
2,600
|
|
Stock based
compensation
|
546
|
|
789
|
|
|
33,934
|
|
34,584
|
|
|
|
|
|
Operating
loss
|
(6,191)
|
|
(8,236)
|
|
|
|
|
Finance income,
net
|
277
|
|
(240)
|
Loss on
Investment
|
-
|
|
(760)
|
|
|
|
|
Net and comprehensive
loss
|
$
|
(5,914)
|
|
$
|
(9,236)
|
|
|
|
|
Loss per share -
basic and diluted
|
$
|
(0.02)
|
|
$
|
(0.03)
|
theScore,
Inc
|
|
Consolidated
Statements of Cash Flows
|
|
(in thousands of
Canadian dollars)
|
|
|
|
|
Years ended August
31,
|
|
2018
|
2017
|
|
|
|
Cash flows used in
operating activities
|
|
|
|
|
Net and comprehensive
loss
|
$
|
(5,914)
|
$
|
(9,236)
|
|
Adjustments
for:
|
|
|
|
|
Depreciation and
amortization
|
3,809
|
3,081
|
|
|
Stock based
compensation
|
546
|
789
|
|
|
Loss on
investment
|
-
|
760
|
|
|
|
(1,559)
|
(4,606)
|
|
Change in non-cash
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(261)
|
(252)
|
|
|
Tax credits
recoverable
|
-
|
3,061
|
|
|
Prepaid expenses and
deposits
|
160
|
(230)
|
|
|
Accounts payable and
accrued liabilities
|
908
|
(2,379)
|
|
|
Deferred lease
obligation
|
(74)
|
(5)
|
|
733
|
195
|
Net cash used in
operating activities
|
(826)
|
(4,411)
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Exercise of stock
options
|
314
|
54
|
Net cash from
financing activities
|
314
|
54
|
|
|
|
Cash flows used in
investing activities
|
|
|
|
Additions to property
and equipment
|
(82)
|
(129)
|
|
Additions to
intangible assets
|
(3,173)
|
(3,085)
|
|
Tax credits
recoverable
|
-
|
2,131
|
Net cash used in
investing activities
|
(3,255)
|
(1,083)
|
|
|
|
Decrease in cash and
cash equivalents
|
(3,767)
|
(5,440)
|
|
|
|
Cash and cash
equivalents, beginning of period
|
10,114
|
15,554
|
|
|
|
Cash and cash
equivalents, end of period
|
$
|
6,347
|
$
|
10,114
|
EBITDA
|
|
|
|
|
|
Three months
ended
|
Year ended
|
|
|
August 31,
2018
|
|
August 31,
2017
|
August 31,
2018
|
|
August 31,
2017
|
|
|
|
|
|
|
|
|
Net and comprehensive
loss for the period
|
|
$
|
(3,137)
|
|
$
|
(3,418)
|
$
|
(5,914)
|
|
$
|
(9,236)
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
857
|
|
935
|
3,809
|
|
3,081
|
|
Finance expense
(income), net
|
|
(71)
|
|
587
|
(277)
|
|
240
|
|
|
|
|
|
|
|
|
EBITDA
(loss)
|
|
$
|
(2,351)
|
|
$
|
(1,896)
|
$
|
(2,382)
|
|
$
|
(5,915)
|
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SOURCE theScore, Inc.