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theScore Reports F2019 Q4 and Year-End Financial Results

October 23, 2019 GMT

TORONTO--(BUSINESS WIRE)--Oct 23, 2019--

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 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 EndedYear ended
August 31, 2019August 31, 2018August 31, 2019August 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/

CONTACT: James Bigg

Sr. Manager, Communications

Score Media and Gaming Inc.

Tel: 647-638-9281

Email:james.bigg@thescore.comAlvin Lobo

Chief Financial Officer

Score Media and Gaming Inc.

Tel: 416-479-8812

Email:alvin.lobo@thescore.com

KEYWORD: NORTH AMERICA CANADA

INDUSTRY KEYWORD: SOFTWARE TECHNOLOGY OTHER SPORTS SPORTS

SOURCE: Score Media and Gaming Inc.

Copyright Business Wire 2019.

PUB: 10/23/2019 04:13 PM/DISC: 10/23/2019 04:13 PM

http://www.businesswire.com/news/home/20191023005840/en