Score Media and Gaming Inc. (TSX Venture: SCR) (“theScore”)
today announced the financial results for the three and 12 months
ended August 31, 2019 in accordance with International Financial
Reporting Standards (“IFRS”). All financial information in this
press release is reported in Canadian dollars, unless otherwise
indicated.
Q4 F2019 Highlights
- theScore launched its mobile sportsbook ‘theScore Bet’ in New
Jersey in September after receiving regulatory approval by the New
Jersey Division of Gaming Enforcement during Q4. Developed natively
for iOS and Android devices, theScore Bet is a comprehensive mobile
sports betting platform, uniquely integrated with theScore’s
popular sports app to provide an immersive and holistic sports
betting experience.
- theScore announced a major expansion of its U.S. mobile sports
betting business, securing market access rights to offer online and
mobile sports betting and i-gaming applications in an additional 11
states via a 20-year market access framework agreement with Penn
National Gaming Inc., North America’s largest regional gaming
operator. Penn National also took an equity stake in theScore,
subscribing for US$7.5 million of Class A Shares as part of a US$10
million Private Placement, alongside other investors.
- theScore secured a $40 million strategic investment from a fund
managed by Fengate Asset Management to fund the growth and
development of theScore’s media and sports betting businesses.
- theScore achieved a new Q4 revenue record of $6.4 million. This
compared to $5.1 million in revenue for the same period last year,
with year-over-year growth of 25% led by strong performances from
direct sales in the U.S. and Canada.
- theScore achieved a new Q4 record for average monthly user
sessions on theScore sports app. Average monthly sessions reached
272 million during Q4 F2019, year-over-year growth of 6%, with
users opening it an average of 75 times a month each.
- theScore’s social sports content reached approximately 142
million users in Q4 F2019, a new quarterly record and
year-over-year growth of 150%.
- Total video views of theScore’s esports content also achieved a
new quarterly record of 85 million, year-over-year growth of
157%.
“theScore Bet is live and taking bets in New Jersey, capping one
of the most significant quarters and fiscal years in our history,”
said John Levy, Founder and CEO of theScore. “Not only did we
successfully launch our new sports betting platform in the
fast-growing New Jersey sports betting market, but we also secured
market access rights for an additional 11 states via a
highly-coveted partnership with Penn National Gaming.
“Along with New Jersey, this provides us with potential market
access to offer mobile sports betting to about 30% of the U.S.
population. We continue to explore strategic opportunities to bring
theScore Bet to as many states as possible and are well capitalized
to execute on our vision following the $40 million strategic
investment by Fengate.
“It was also a record Q4 for advertising revenue in our media
business, powered by strong direct sales deals in the U.S. and
Canada, while records were also broken for Q4 engagement on our
sports app as well as consumption of our esports and social
content. The continued growth of our media business, combined with
our unique and differentiated entry into the sports betting space,
puts us in a strong position as we enter fiscal 2020.”
Financial Results Revenue for the three months ended
August 31, 2019 was $6.4 million compared to $5.1 million for the
same period last year, growth of 25% and a new record for Q4.
Growth in revenue for the quarter was primarily the result of
strong performances from direct sales in Canada and the U.S.
Revenue for the 12 months ended August 31, 2019 was $31.1 million
versus $27.7 million for the same period last year, growth of 12%
and a new record for a fiscal year.
EBITDA loss for the three months ended August 31, 2019 was $4.1
million versus $2.4 million for the same period last year. The
increase in EBITDA loss was primarily the result of additional
expenses relating to the ongoing development of theScore’s sports
betting business. EBITDA loss for the 12 months ended August 31,
2019 was $6.5 million versus $2.4 million in the same period last
year.
Audience Metrics Total average monthly active user
sessions of theScore mobile app on iOS and Android reached 272
million in Q4 F2019, year-over-year growth of 6% and a new record
for Q4. This represents 75 app sessions-per-user-per-month on a
base of 3.6 million average monthly app users.
theScore’s content on its social channels achieved an average
monthly reach of approximately 142 million in Q4 F2019,
year-over-year growth of 150% and a new quarterly record.
Total video views of theScore esports’ content hit 85 million
for Q4 F2019, year-over-year growth of 157% and a new quarterly
record. Total watch minutes for theScore esports’ YouTube channel
reached 384 million, year-over-year growth of 64% and a new
quarterly record. An additional 146,000 YouTube subscribers were
added during the period, with channel subscribers surpassing
950,000 earlier this month.
Conference Call & Webcast theScore will host a
conference call and webcast at 4:30pm EST on Wednesday, October 23
where management will review the Company’s F2019 Q4 and Year End
results, followed by a Q&A session:
Conference Call Dial-In Local: +1 (647)
689-5637 Toll Free North America: +1 (877) 396-4208
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
Neither the 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 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 mobile sports betting app ‘theScore Bet’
delivers an immersive and holistic mobile sports betting
experience. Natively built for iOS and Android devices, theScore
Bet is deeply integrated with theScore’s media app and is currently
available to place wagers in New Jersey. Publicly traded on the TSX
Venture Exchange (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 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.
Score Media and Gaming Inc. Consolidated Statements of
Financial Position (in thousands of Canadian dollars)
As at August 31st,
2019
2018
ASSETS Current assets: Cash and cash equivalents
$
4,035
$
6,347
Restricted cash related to customer deposits
11
-
Accounts receivable
7,956
5,839
Prepaid expenses and deposits
1,261
1,078
13,263
13,264
Non-current assets: Restricted cash related to customer deposits
668
-
Property and equipment
1,373
1,453
Intangible and other assets
21,760
6,074
Tax credits recoverable
1,616
1,616
25,417
9,143
Total assets
$
38,680
$
22,407
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Accounts payable and accrued liabilities
$
7,147
$
3,710
Current portion of deferred lease obligation
184
119
Non-current liabilities: Deferred lease obligation
112
296
Shareholders' equity
31,237
18,282
Commitments Subsequents events note Total liabilities
and shareholders' equity
$
38,680
$
22,407
Score Media and Gaming Inc. Consolidated Statements of
Comprehensive Loss (in thousands of Canadian dollars, except per
share amounts) Years ended August 31,
2019
2018
Revenue
$
31,121
$
27,743
Operating expenses: Personnel
18,818
16,212
Content
2,109
1,771
Technology
3,014
2,906
Facilities, administrative and other
10,641
6,200
Marketing
2,472
2,490
Depreciation of property and equipment
396
418
Amortization of intangible assets
2,721
3,391
Stock based compensation
561
546
40,732
33,934
Operating loss
(9,611
)
(6,191
)
Finance income (expense), net
198
277
Net loss
$
(9,413
)
$
(5,914
)
Loss per share - basic and diluted
$
(0.03
)
$
(0.02
)
Foreign currency translation differences from foreign
operations
4
-
Total comprehensive income (loss) for the period
$
(9,409
)
$
(5,914
)
Score Media and Gaming Inc. Consolidated Statements of Cash
Flows (in thousands of Canadian dollars) Years Ended
August 31,
2019
2018
Cash flows from (used) in operating activities Net loss
$
(9,413
)
$
(5,914
)
Adjustments for: Depreciation and amortization
3,117
3,809
Stock based compensation
561
546
(5,735
)
(1,559
)
Change in non-cash operating assets and liabilities: Accounts
receivable
(2,117
)
(261
)
Restricted cash related to player funds
(11
)
-
Restricted cash related to customer deposits
(668
)
-
Prepaid expenses and deposits
(183
)
160
Accounts payable and accrued liabilities
3,437
908
Deferred lease obligation
(119
)
(74
)
339
733
Net cash from (used) in operating activities
(5,396
)
(826
)
Cash flows from financing activities Exercise of stock
options
118
314
Issuance of shares, net of transaction costs
21,685
-
Net cash from financing activities
21,803
314
Cash flows used in investing activities Additions to
property and equipment
(316
)
(82
)
Additions to intangible and other assets
(18,407
)
(3,173
)
Loss from investments
-
Net cash used in investing activities
(18,723
)
(3,255
)
Increase (decrease) in cash and cash equivalents
(2,316
)
(3,767
)
Effect of exchange rate fluctuations on cash held
4
-
Cash and cash equivalents, beginning of period
6,347
10,114
Cash and cash equivalents, end of period
$
4,035
$
6,347
Three Months Ended Year ended August 31, 2019 August 31, 2018
August 31, 2019 August 31, 2018 Net loss for the period
$
(4,847
)
$
(3,137
)
$
(9,413
)
$
(5,914
)
Adjustments: Depreciation and amortization
724
857
3,117
3,809
Finance (income) expense, net
(29
)
(71
)
(198
)
(277
)
EBITDA
$
(4,152
)
$
(2,351
)
$
(6,494
)
$
(2,382
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191023005840/en/
James Bigg Sr. Manager, Communications Score Media and Gaming
Inc. Tel: 647-638-9281 Email: james.bigg@thescore.com
Alvin Lobo Chief Financial Officer Score Media and Gaming Inc.
Tel: 416-479-8812 Email: alvin.lobo@thescore.com
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