Score Media and Gaming lauds strong Q3 momentum but counts the cost of expansion

Image source: theScore

Score Media and Gaming Inc has posted financial results for the three and nine months ended May 31, 2021, citing continued momentum despite the impact of sharp costs arising from expansion of gaming operations and its recently completed US IPO.

Those expenses led to an EBITDA loss in Q3 F2021 of $21.1m compared to an EBITDA loss of $8.7m year-on-year. 

Total revenue for Q3 F2021 was $6.4m, with record Q3 media revenue of $8.9m partially offset by negative net gaming revenue of $2.5m. Media revenue in the quarter grew 270% year-on-year from $2.4m and was up 5% from the same period in 2019.

Gaming handle was $73m, while gross gaming revenue was negative $40,000 in Q3 F2021. Inclusive of promotional costs and fair value adjustments on unsettled bets, the company generated negative net gaming revenue of $2.5m.

Chairman and CEO John Levy, updating investors, noted: “theScore demonstrated continued momentum across our business in the fiscal 2021 third quarter as solid gaming handle was complemented by record third quarter media revenue. 

“Third quarter media revenue of $8.9m was up 270% year-over-year and grew 5% compared to the same period in 2019. In addition, our unique, integrated sports media and betting approach powered gaming handle of $73m on theScore Bet, including $30.8m wagered in March, representing our single biggest handle month to date. 

“We continue to work through the licensing process ahead of launches of theScore Bet in additional US states, with an expectation that we will at least double the number of markets in which we are live in the next 12 months.”

Levy also used the update to add more detail around recent Canadian sports betting developments. He stated: “Canada realized a significant milestone last month with the passage of and subsequent Royal Assent for Bill C-218, which legalized single event sports wagering, paving the way for each Canadian province to implement a regulated sports betting framework. 

“With a large and passionate Canadian user base, strong brand identity and best in class integrated media and betting platforms, we are uniquely positioned for initial and long-term success in the market. 

“Notably, there is an enormous potential market opportunity in our home province of Ontario, which is expected to be the largest regulated sports betting market in North America by population upon its expected opening later this year. 

“We are actively working to ensure theScore Bet will be ready to launch sports betting and igaming as soon as the Ontario market opens, subject to receipt of regulatory approval. We have also already begun amplifying our brand through activations in the Province and will accelerate those efforts in the lead up to the market opening.”

Levy turned his focus to the North American market, where he outlined the team’s progress in continuing to build out a modern, world-class gaming technology platform. 

“From the start, owning and controlling our entire technology stack has been a strategic priority,” he said. “Over the past two years, we’ve made great progress toward accomplishing that objective, developing and deploying key elements of our proprietary tech stack, while at the same time working with our partners at Bet.Works whose technology and platform services have helped us successfully rollout theScore Bet in several markets across the US.

“Next month will mark a major milestone, as we plan to fully deploy our proprietary, internally-developed PAM and promotion engine, which have been approved by Gaming Laboratories International (GLI) and applicable state gaming labs. 

“These custom built, cutting-edge systems will unlock additional user personalization, cross-platform integration capabilities and platform automation, which we believe will serve to further differentiate theScore Bet’s best-in-class offering and drive both near and long-term growth.”

On the outlook, he said: “Following our successful third quarter US initial public offering and public listing, our entire team remains focused on further establishing theScore as a leading, integrated provider of digital sports media and sports betting throughout the US and Canada. 

“We believe our unique collection of interactive media and leading-edge technology along with our massively engaged user base positions theScore for long-term growth and shareholder value creation. Subject to receipt of regulatory approval, we are eager to begin operating our integrated betting platform in Ontario later this year and believe our favorable competitive position will result in strong initial market share as we build our foundation for continued, sustainable growth.”