News 2019-10-23 16:26 ET - News Release
Mr. John Levy reports
THESCORE REPORTS F2019 Q4 AND YEAR-END FINANCIAL RESULTS
Score Media and Gaming Inc. has released the financial results for the three and 12 months ended Aug. 31, 2019, in accordance with international financial reporting standards.
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
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.
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)