Presentation delivered on January 13, 2021 for theScore's Q1 F2021 earnings. For the transcript of this presentation, please visitor our investor relations page at scoremediaandgaming.com.
2. All statements other than statements of historical facts included in this
presentation may constitute forward-looking information and are based on the
best estimates of Management of the current operating environment. These
forward-looking statements are related to, but not limited to, theScore’s
operations, anticipated financial performance, business prospects and
strategies. Forward looking information typically contains statements with
words such as ‘‘anticipate’’, ‘‘believe’’, ‘‘expect’’, ‘‘plan’’, ‘‘estimate’’, ‘intend’’,
‘‘will’’, ‘‘may’’, ‘‘should’’ or similar words suggesting future outcomes. These
statements reflect current assumptions and expectations regarding future
events and operating performance as of the date of November 30, 2020.
4. Q1 F2021
F2021 is off to a record-breaking start across our
media and gaming operations
● Best-ever quarter for gaming handle and media revenue.
● Diligently preparing for the enormous opportunity in Canada with the
anticipated creation of a fully legalized and regulated sports betting and
iGaming market.
● Record results underscore our strong market position in mobile sports
media and sports betting, and the opportunities ahead in these high-growth
industries.
● Closed bought deal offering via short-form prospectus at a price of $1.40
per Initial Share for gross proceeds of $46,000,920. Net proceeds to be
used to fund working capital and general corporate purposes, including
growth and expansion of theScore Bet in the U.S. and Canada.
● Based on the continued development of theScore and the growth of the
sports betting industry across North America, we are actively considering
listing on a U.S. stock exchange
5. Q1 F2021
Gaming handle on theScore Bet up 535% year-over-year
in Q1 F2021, reaching $55.8 million for the period
● Q1 results showcase how theScore Bet is growing and the power of
our combined media and betting approach.
● Focused on accelerating our momentum and deepening our
market-leading media and gaming integrations, including the launch
of Bet Section on theScore media app this quarter.
● Kicked off the quarter by successfully launching theScore Bet in
Colorado and Indiana.
● On track to launch theScore Bet next in Iowa in the coming weeks,
subject to regulatory approval
6. theScore is Canada’s leading mobile sports brand and we
are uniquely situated to capitalize on the country’s
anticipated expansion of online gaming
● We estimate a market potential for online gaming in Canada of
between US $3.8 billion and $5.4 billion in annual gross gaming
revenue.*
● Developments this quarter show there is now clear cross-party
support and strong momentum to amend Canada’s federal laws
and enable a legal sports betting market to flourish.
○ We are actively participating in conversations at both
the federal and provincial levels.
● Actively preparing and eager to deliver theScore Bet to fans in
our home territory.
Canada Opportunity
*Based on historical data extrapolated from legal online gaming markets in the U.S. and mature markets like the U.K. and Australia
7. theScore is uniquely positioned as North America’s only truly integrated mobile media and gaming
company. Based on the continued development of theScore and the growth of the sports betting
industry, in our view, it is timely to consider an additional listing on a U.S. stock exchange.
We believe the potential benefits for theScore and our investor base may include:
● A significantly larger pool of available capital
● Greater average daily trading volume
● Greater number of U.S. retail and institutional investors
● A potential increase in market valuation
We will hold a virtual Annual and Special Meeting of shareholders on February 10
● In connection with a potential listing, we will ask shareholders to approve a special resolution to authorize
theScore’s board of directors to effect a share consolidation
Consideration of a U.S. Listing
9. Product & Content
We achieved a new all-time record for media revenue in Q1
F2021, generating $10.6 million as brand partners looked
to engage with our large media app audience.
● Notable direct campaigns included the NBA, Fox Sports, and Trojan
(U.S) and Audi, Volkswagen, and DAZN (Canada).
● Recorded 3.9 million monthly active users, each opening theScore app
an average of 116 times a month. Strong results achieved despite no
regular season NBA or NHL action this quarter.
○ Results demonstrate our brand loyalty with sports fans
across North America
● Social content (Twitter, Facebook, Instagram, TikTok) reached
approximately 105 million fans in Q1 F2021, serving as a valuable brand
building tool and a source of incremental revenue.
○ Activated brand partnerships with Head and Shoulders
and Subway
10. In November, we launched Bet Section on theScore media
app - our most integrated and personalized suite of betting
features ever.
● Bet Section, a new dedicated home for betting on our media
app, provides greater visibility for our betting content and
integrations with theScore Bet.
○ Delivers users a suite of highly-personalized betting
features, such as prioritized and tailored markets, live
bet tracking and exclusive promotions.
● Set record highs for new bettors and betting activity during
Thanksgiving week, and again during NBA start/Christmas
week by executing storylined, comprehensive marketing
campaigns across our channels.
● Preparing for upcoming Iowa launch* and ongoing technical
work ahead of our anticipated launch of online casino offering
in New Jersey later this year.
Product & Content
*Subject to regulatory approval
11. Product & Content
theScore esports achieved a new quarterly record for the third
successive period with total video views hitting 357 million in
Q1 F2021, year-over-year growth of 355%. Rapid audience growth
and engagement continues to provide new brand activation and
content opportunities.
● Total YouTube subscribers now exceed 1.58 million; Total Tik Tok
subscribers now exceed 2.8 million.
● Secured brand partnerships with notable endemic and non-endemic
brands, including Geico, Riot Games and Mastercard.
● In December, theScore esports made its live event broadcasting debut
as the exclusive English language broadcast partner for League of
Legends’ Demacia Championship, a marquee annual event featuring 24
of China’s top esports teams.
○ We are North America’s preeminent esports media
destination and will continue to aggressively pursue
opportunities in the space.
Forbes - December 18
theScore esports - Twitch
13. FINANCIALS
● Total revenue for Q1 F2021 was $8.5 million vs. $9.2 million for the same period in the previous year. Media revenue in Q1 F2021 of $10.6 million was an
all-time record for us in a single quarter, primarily driven by strong growth in direct advertising revenue compared to the prior period.
● Gaming handle was $55.8 million in Q1 F2021. Gross gaming revenue was ($0.3) million in Q1 F2021. When taking into account promotional costs and fair
value adjustments on unsettled bets, this resulted in negative net gaming revenue of $2.0 million for the three months ended November 30, 2020.
● EBITDA loss in Q1 F2021 was $9.3 million versus EBITDA loss of $4.8 million for the same period last year. Increase in EBITDA loss was primarily due to the
result of additional expenses incurred in connection with the expansion of our gaming operations compared to the prior year.
● Cash at the end of Q1 F2021, pro forma for our December bought deal offering (net of the underwriters’ discount), is $62.4 million.
○ Our $5 million revolving credit facility and our $6.25 million BCAP revolving credit facility both were undrawn as at November 30.
Total Revenue $8,539 $9,219
Operating Expenses $17,813 $14,051
EBITDA $(9,274) $(4,832)
Gaming Handle* $55,800 $8,778
Gross Gaming Revenue** $(270) $242
Net Gaming Revenue*** $(2,040) $(26)
*Handle is calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Handle does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end.
**Gross gaming revenue is calculated as dollar amounts bet by customers, less the dollar amounts paid out to customers in respect of such bets which have settled in the applicable period.
***Net gaming revenue is measured as gross gaming revenue, less free bets, promotional costs, bonuses and fair value adjustments on unsettled bets. Refer to Note 15 for more details on unsettled bets.