News Press Releases

Playmaker Reports Fourth Quarter 2021 and Full Year Results Highlighted by Exceptional Organic Growth and Profitability

March 21, 2022

Q4 2021 pro forma revenue was U.S. $7.5 million, an organic increase of 49% over Q4 2020

2021 annual pro forma revenue was U.S. $23.8 million, an organic increase of 91% over 2020

Q4 2021 pro forma Adjusted EBITDA was U.S. $2.9 million, an organic increase of 23% over Q4 2020

2021 annual pro forma Adjusted EBITDA was U.S. $9.3 million, an organic increase of 119% over 2020

Playmaker Capital Inc. (TSX-V: PMKR; OTCQX: PMKRF) (“the Company” or “Playmaker”), the digital sports media company that delivers authentic content through its portfolio of sports media and technology brands, is pleased to report its financial results for the three months ended December 31, 2021 (“Q4 2021”) and for the full year of 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220321005313/en/

Playmaker Reports Fourth Quarter 2021 and Full Year Results Highlighted by Exceptional Organic Growth and Profitability (Graphic: Business Wire)

“Our pro forma results for Q4 2021 and full year 2021 demonstrate the continued execution of our strategy. We are acquiring great companies and successfully integrating them to leverage the centres of excellence within each business for the benefit of the entire Playmaker ecosystem. Our audience numbers have grown dramatically. We are now generating over 200 million monthly sessions from more than 85 million unique users across Playmaker’s web properties, generating over 50 million monthly YouTube views and 550K monthly podcast streams, and reaching more than 100 million fans across all major social platforms. We have expanded our distribution channels to deliver relevant content to our fans when they want it, how they want it, and where they want it. Our organic growth has been phenomenal, and we have done it while maintaining a focus on profitability with a 119% increase in pro forma adjusted EBITDA year over year.” said Jordan Gnat, Founder and CEO of Playmaker.

FINANCIAL HIGHLIGHTS (Figures in USD)

Revenue – Revenue was $7.0 million in Q4 2021, compared to $nil in Q4 2020.
Operating Income – Operating income was $0.5 million in Q4 2021, compared to an operating loss of less than $0.1 million in Q4 2020.
Pro Forma Revenue (including all acquisitions to date) – Revenue was $7.5M in Q4 2021, an increase of 49% from $5.0M in Q4 2020. For the twelve months ended December 31, 2021, pro forma revenue was $23.8M, an increase of 91% from $12.5M in the prior year.
Pro Forma Adjusted EBITDA (including all acquisitions to date) – Adjusted EBITDA was $2.9M in Q4 2021, an increase of 23% from $2.4M in Q4 2020. For the twelve months ended December 31, 2021, pro forma adjusted EBITDA was $9.3M, an increase of 119% from $4.2M in the prior year.
Cash and Cash Equivalents – Cash and cash equivalents were$7.1 million at December 31, 2021 compared to $6.6 million at December 31, 2020.

OPERATIONAL HIGHLIGHTS

Playmaker added to its collection of premier sports media brands through the acquisitions of Futbol Sites, Fanáticos, Yardbarker, Two-Up, SoccerMemes, VarskySports, TNN, Super Poker, Cracks and Futmarketing.
Playmaker achieved its highest rankings by Comscore for total web visits in the month of December 2021, ranking as the #6 digital sports media group across the Americas and the #1 regional sports media group across all of Latin America.
Playmaker achieved record engagement metrics in Q4 2021 across its owned and operated web properties, reaching more than 85 million monthly unique users and generating more than 462 million sessions, representing a 50%+ increase over Q4 2020.
Successful migration of Yardbarker’s web monetization to Playmaker Bench, Playmaker’s in-house monetization tech stack; commenced migration of TNN web properties to Playmaker Bench; Futbol Sites and TNN launched content syndication with major news outlets with support of Playmaker’s syndication centre of excellence.
The Morning Bark, Yardbarker’s daily email newsletter, increased its subscriber base to more than 370K.
TNN’s podcast network achieved a monthly record of 550K streams in Q4 2021.
Playmaker brand Cracks generated more than 600 million views on YouTube in 2021.
Playmaker properties reached more than 100 million social media followers across all major platforms including Facebook, Twitter, TikTok, Instagram, YouTube and Twitch.

CONFERENCE CALL

The Company will host a management conference call to discuss its Q4 and full year financial results on March 21, 2022 at 8:30 a.m. (Eastern Time). Hosting the call will be Jordan Gnat, Chief Executive Officer; Jake Cassaday, Chief Operating Officer; and Mike Cooke, Chief Financial Officer.

To participate in the conference call, please dial-in using one of the following numbers approximately five minutes prior to commencement and ask to join the Playmaker call:

Dial-In Number (Toll Free): 1-844-707-6933

Dial-In Number (International): 1-412-317-5796

A replay of the Conference Call will be made available at playmaker.fans/investors.

To sign up for Playmaker Investor Alerts, visit: PMKR Investor Alerts.

TSX VENTURE EXCHANGE DISCLAIMER
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-IFRS MEASURES
Some of the information presented in this press release includes non-IFRS financial measures, including, “EBITDA”, “Adjusted EBITDA”, and metrics that are presented on a pro forma basis. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. “Adjusted EBITDA” is defined as earnings before interest, taxes, depreciation and amortization of our operating segments, excluding the head office costs incurred by our corporate segment.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker’s current expectations regarding future events. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specific forward-looking information contained in this press release includes, but is not limited to, statements relating to the future performance or achievements of Playmaker and the Futbol Sites, Yardbarker, Two-Up, TNN, Super Poker, VarskySports, Cracks and Futmarketing transactions, including their continued expansion and growth, and other statements that are not historical facts. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT PLAYMAKER
Playmaker Capital Inc. (TSX-V: PMKR) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a premier collection of sports media brands, curated to deliver highly engaged audiences of sports fans to sports betting companies, leagues, teams and advertisers.

Playmaker reports in U.S. dollars, except where noted otherwise, and in accordance with International Financial Reporting Standards (“IFRS”).

For more information, visit: http://www.playmaker.fans or contact Playmaker Chief Executive Officer Jordan Gnat via email jgnat@playmaker.fans.


Playmaker Capital Inc. Consolidated Statements of Financial Position (Stated in U.S. dollars)

		December 31, 2021		December 31, 2020 (Note 2)
Assets
Current
Cash and cash equivalents	$	7,111,728	$	6,631,358
Accounts receivable		4,406,719		-
Income taxes receivable		45,711		-
Inventory		18,770		-
Prepaid and other current assets		377,061		3,107
Total current assets		11,959,989		6,634,465
Property and equipment		778,381		610
Intangible assets		45,808,097		-
Goodwill		28,393,097		-
Deferred tax asset		868,116
Other long-term assets		20,720		-
Total assets	$	87,828,400	$	6,635,075
Liabilities
Current
Accounts payable	$	567,572	$	-
Income taxes payable		81,264		-
Deferred revenue		188,993		-
Accrued expenses and other current liabilities		2,623,321		87,767
Current portion of lease liability		88,951		-
Current portion of long-term debt		14,365		-
Current deferred consideration		2,345,759		-
Current contingent consideration		10,475,031		-
Total current liabilities		16,385,256		87,767
Long-term debt		46,708		-
Long-term lease liability		415,057		-
Deferred tax liability		4,237,822
Deferred consideration		1,848,388		-
Contingent consideration		8,837,406		-
Total liabilities		31,770,637		87,767
Shareholders' Equity
Share capital		60,494,370		6,823,258
Contributed surplus		606,863		30,740
Warrant reserve		303,278		38,740
Accumulated other comprehensive (loss) income		(1,368,266)		90,796
Deficit		(3,978,482)		(436,226)
Total shareholders’ equity		56,057,763		6,547,308
Total liabilities and shareholders’ equity	$	87,828,400	$	6,635,075


Playmaker Capital Inc. Consolidated Statements of Net Loss and Comprehensive Loss (Stated in U.S. dollars, except share information) For the years ended December 31,

		2021		2020
Revenue	$	14,820,154	$	-
Cost of sales		1,189,901		-
Gross profit		13,630,253		-
Operating expenses
Advertising, commissions and fees		2,666,087		-
Web services and publishing		613,851		-
Salary and wages		5,797,734		92,551
Professional fees		828,410		71,328
General and administration		733,966		45,435
Share-based compensation		576,778		29,908
Depreciation and amortization		648,441		1,179
Total operating expenses		11,865,267		240,401
Operating income (loss)		1,764,986		(240,401)
Listing and filing fees		(1,826,331)		-
Transaction costs		(842,729)		-
Interest expense		(130,144)		-
Other income		21,761		-
Other expenses		(19,819)		(2,201)
Change in fair value of consideration		(2,901,005)		-
Change in fair value of convertible debenture		(678,429)		-
Foreign exchange gain (loss)		849,908		(23,580)
Net loss before taxes		(3,761,802)		(266,182)
Deferred income tax recovery		324,824		-
Current income tax expense		(105,278)		-
Net loss	$	(3,542,256)	$	(266,182)
Other comprehensive (loss) income:
(Loss) gain on translation		(1,459,062)		47,932
Net loss and comprehensive loss	$	(5,001,318)	$	(218,250)
Basic and diluted net loss per share	$	(0.03)	$	(0.05)
Basic and diluted weighted average number of shares		128,850,587		5,565,479


Playmaker Capital Inc. Consolidated Statements of Cash Flows (Stated in U.S. dollars) For the years ended December 31,

Operating activities		2021		2020
Net loss	$	(3,542,256)	$	(266,182)
Depreciation and amortization		648,441		1,179
Share-based compensation		576,778		29,908
Listing fees, RTO costs		618,184		-
Non-cash interest expense		107,434		-
Change in fair value of contingent consideration		2,901,005		-
Change in fair value of convertible debenture		678,429		-
Unrealized foreign exchange (gain) loss		(864,176)		21,969
Deferred income tax recovery		(324,824)		-
Loss on disposal of asset		-		2,201
Change in non-cash working capital:
Accounts receivable		(829,901)		-
Income taxes receivable		9,745		-
Inventory		8,926		-
Prepaid and other current assets		(75,341)		1,442
Accounts payable		(135,661)		(5,757)
Income taxes payable		81,264		-
Deferred revenue		121,810		-
Accrued expenses and other current liabilities		535,098		16,700
Net cash flows provided by (used in) operating activities		514,955		(198,540)
Investing activities
Acquisition of Futbol Sites, net of cash acquired		(6,228,466)		-
Cash acquired through RTO		162,375		-
Acquisition of Fanaticos		(204,290)		-
Acquisition of Yardbarker, net of cash acquired		(9,331,068)		-
Settlement of Yardbarker deferred consideration		(500,000)
Acquisition of SoccerMemes		(100,000)		-
Acquisition of Two-Up, net of cash acquired and debt assumed		(676,764)		-
Acquisition of Varsky		(175,804)		-
Acquisition of TNN, net of cash acquired		(4,163,915)		-
Acquisition of SuperPoker		(1,727,806)		-
Acquisition of Cracks		(478,141)		-
Purchase of property and equipment		(246,415)		-
Purchase of intangibles		(55,590)		-
Net cash flows used in investing activities		(23,725,884)		-
Financing activities
Issuance of preferred shares		5,505,000		5,178,585
Issuance of common shares		19,881,600		382
Issuance costs on preferred and common shares		(1,236,391)		(88,383)
Options exercised		36,704		-
Warrants exercised		18,066		-
Long-term debt repayments		(139,587)		-
Lease liability principal payments		(28,410)		-
Repurchase of preferred shares		-		(166,666)
Net cash flows provided by financing activities		24,036,982		4,923,918
Increase in cash and cash equivalents		826,053		4,725,378
Foreign exchange impact		(345,683)		26,973
Cash and cash equivalents, beginning of year		6,631,358		1,879,007
Cash and cash equivalents, end of year	$	7,111,728	$	6,631,358