Score Media and Gaming (theScore) reported declining revenue and EBITDA in its financial results for the three and six months ended February 29, 2020, but revealed a new Q2 record for engagement on its sports app and a 91% increase in views of its esports video content.
Updating investors, the firm cited total Q2 revenue of $6.7m compared to $6.8m for the same period last year, while total revenue for the six months ended February 29, 2020 was $15.9m versus $16.3m year-on-year.
Revenues from media activities for the three months ended February 29, 2020 and February 28, 2019 were each $6.8m respectively, while revenues for media activities for the six months ended February 29, 2020 and February 28, 2019 were $16.1m and $16.3m respectively.
Gaming handle, said the firm, was $13.8m in Q2 F2020, versus $8.8m in Q1 F2020, and $22.6m for the six months ended February 29, 2020. Gross gaming revenue was $443,000 in Q2 F2020 and $685,000 for the six months ended February 29, 2020. When taking into account promotional costs and fair value adjustments on unsettled bets, this resulted in negative net gaming revenue of $195,000 and $221,000 for the three and six months ended February 29, 2020.
EBITDA loss in Q2 F2020 was $8.6m versus EBITDA loss of $2.2m for the same period last year. EBITDA loss for the six months ended February 29, 2020 was $13.4m versus EBITDA loss of $1.2 million in the same period last year. The increase in EBITDA loss was primarily the result of additional expenses incurred in connection with the launch and expansion of our gaming operations
Founder and CEO John Levy commented: “We saw great momentum across our core media and gaming operations in Q2 F2020, including exciting growth in sports betting handle, a new Q2 record for engagement on our sports app, powerful reach on our social channels, and continued esports audience growth.”
Turning to the firm’s approach to the coronavirus crisis, Levy stated: “We now find ourselves in an unprecedented time, facing the rapidly evolving COVID-19 pandemic and the total disruption to global sports events that it has caused. Our first priority has been to protect the safety and well-being of our team, which led us to quickly implement a mandatory work-from-home policy for all staff in mid-March.
“At the same time, we have been responding to the anticipated revenue impact of the sudden disruption in the sports calendar by aggressively managing our costs and availing ourselves of applicable government programs.
“By moving early and decisively, we have been able to keep our team at full strength, empowering them to continue to keep sports fans as engaged, entertained and informed as possible, and to execute on our key product development priorities, which will position us well for when sports resume.”
In terms of operating highlights, theScore achieved a new Q2 record for engagement on its sports app, with average monthly sessions up 15% year-on-year reaching 453 million during the period. Users opened the app on average 110 times a month each. Average monthly active users also grew year-over-year to 4.1 million.
The firm also saw its social sports content across Twitter, Facebook, and Instagram reach approximately 91 million users in Q2 F2020. It added approximately 625,000 followers on its TikTok account during Q2, and last month surpassed one million followers on the platform.
“On theScore Bet both handle and gross gaming revenue continued to grow off the back of continued enhancements to our user experience, including support for more sports, even more betting options, and deeper integrations between our media and gaming platforms, setting us up perfectly as we continue to expand into states beyond New Jersey,” said Levy.
“It was also a record Q2 for user sessions on our sports app, with monthly active users up year-over-year for the second quarter running. Furthermore, we also saw more powerful reach on our social and esports channels, which continue to drive strong engagement despite the mass disruption to traditional sports caused by the COVID-19 pandemic.”
In the face of the ongoing COVID-19 pandemic, the company said it continues to execute on its product development road map, including its plans to expand its sports betting platform, theScore Bet, to Indiana and Colorado later this year upon receipt of all applicable regulatory approvals, in anticipation of the resumption of sporting events.
At the same time, the firm is actively producing sports content designed to engage users on theScore app and its social channels during this period when live sports are on hiatus. In addition, theScore’s esports content team continues to develop and output new and innovative video content for its growing cross-channel audience, led by YouTube.
On the outlook, the company warned that it does expect a decline in revenue beginning in Q3 F2020 compared to the prior year arising from the health crisis. In response, it said it is taking measures to manage costs, including the reduction of operating expenses and the exploration of applicable government programs. As part of these efforts, earlier this month, every member of theScore’s management team agreed to forego 25% of their salary from May 1 to August 31.