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Earnings Webcast
Q2 F2020
April 22, 2020
1
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 February 29, 2020.
Comments on COVID-19 Pandemic
3
Score Media & Gaming - Q2 F2020
4
Q2 F2020 OVERVIEW
5
● theScore Bet achieved quarter-over-quarter growth in
gaming handle (58%) and gross gaming revenue (83%).
Momentum supported by ongoing product enhancements
and deeper integrations between gaming and media
platforms.
● Secured market access to offer mobile sports betting in
Colorado via an agreement with a subsidiary of US gaming
operator Jacobs Entertainment Inc.
○ Subject to receiving all relevant licenses and
approvals, theScore anticipates launching in
Colorado later this year, as well as in Indiana
under our multi-state market access framework
agreement with Penn National Gaming.
○ Continuing to strategically pursue market access
opportunities across the U.S.
● Became an Authorized Sports Betting Operator of the
National Basketball Association in a multiyear partnership.
Provides theScore with access to official NBA betting data
and related marketing rights for theScore Bet.
Q2 F2020 OVERVIEW
6
● theScore sports app achieved a new Q2 record for
monthly active users sessions of 453 million, year-
over-year growth of 15%. This represents 110
sessions-per-user-per-month on a base of 4.1 million
monthly active users - the second quarter running
MAUs have grown year-over-year.
● theScore’s social content on Twitter, Facebook, and
Instagram reached an average of approx. 91 million
users in Q2 F2020. theScore’s TikTok account now
exceeds 1 million followers after launching in late Q4
F2019 and is now one of the most popular sports
media accounts on the platform.
● Total video views of theScore esports’ content
surpassed 78 million in Q2 F2020, representing year-
over-year growth of 92%. An additional 127,000
YouTube subscribers were added during the period,
with channel subscribers now surpassing 1.2 million.
COVID-19 RESPONSE
The Company is actively responding to the rapidly evolving COVID-19 pandemic by taking measures to ensure the
health and safety of its team members and to mitigate the business impact on the Company caused by the
unprecedented postponement, suspension or cancellation of global sporting events.
● Effective March 16, 2020 the Company successfully adopted a mandatory work-from-home program, keeping our team at full-strength
and remaining fully operational.
● Actively producing sports content designed to keep fans as engaged as possible on our sports app and social channels, while our
esports team continues to develop new and innovative video content for our growing cross-channel audience. We also continue to
execute on all product roadmap initiatives, including the multi-state rollout of theScore Bet.
● Given the disruption to the sporting calendar, we expect a decline in revenue beginning Q3 F2020 vs. last year.
● The Company is taking significant measures to manage costs, including the reduction in operating expenses and the exploration of
applicable government programs.
● This month, every member of our management team from VP level upwards, unanimously agreed to forego 25% of their salary from
May 1 to August 31 in exchange for an equivalent grant of Restricted Stock Units (“RSUs”) in the Company, with a variation of this
program also being made available on an optional basis to all full-time staff.
7
BOARD OF DIRECTORS APPOINTMENT
The Company is pleased to announce the appointment of veteran
sports business and marketing executive Brian Cooper to its Board of
Directors.
● Mr. Cooper, Chairman of award-winning marketing agency MKTG Canada and
former senior executive of Maple Leaf Sports and Entertainment, joins the
Board with immediate effect.
● An inductee to the Sponsorship Marketing Council of Canada’s Hall of Fame,
Mr. Cooper launched and built MKTG Canada, brokering over $1 billion in
sponsorships and spearheading its sale to Dentsu Aegis. Prior to that, he
served as VP, Business Development and Operations for MLSE, helping launch
the Toronto Raptors’ expansion franchise. He also serves as Chair of Canada
Basketball, is an advisor to the Wayne Gretzky Foundation, and sits on the
Advisory Board of Playmaker Capital.
● Concurrently, the Company also announced that Lorry Schneider and Mark
Zega would be stepping down from the Board with immediate effect. The
Company thanks them for their service.
8
Product Development & Content
9
PRODUCT & CONTENT - SPORTS BETTING
10
Quarter-over-quarter growth in both handle and gross gaming
revenue was underpinned by our technology-led focus of tightly
integrating our media and gaming platforms.
● Continued to build upon the Q1 launch of our FUSE initiative, where media
app users can browse and select bets from theScore sports app, before
easily navigating to theScore Bet to complete the wager.
● In Q2, we launched support for more sports, more betting options, and
expanded our cross-app integrations into MMA, golf and tennis sections.
● Native calls-to-action in our media app led to a 50% increase in cross-app
usage between theScore sports app and theScore Bet in Q2 versus the
prior quarter.
● Proactively standing-up new markets and support for additional sports on
theScore Bet in the wake of disruption to the regular sports calendar, as well
as additional props, including those for NFL Draft and eNascar, plus others.
PRODUCT & CONTENT - MEDIA
11
On theScore app, we launched innovative new content
offerings in response to the disruption on the sports
world to continue maximizing engagement.
● Created news rivers focused on the impact of COVID-19 on
the sports world, allowing users to subscribe to Breaking
News push notifications to stay on top of the latest news as it
impacts sports leagues, teams and players.
● Also incorporated in-app quizzes and polls, more long form
editorial content, new video franchises, and a free-to-enter
contest based around the NFL draft, where users can
compete for a top prize of $5,000 in return for correctly
predicting the order of the draft.
Leveraged theScore’s considerable monthly
social reach of ~91 million to drive brand reach
and engagement across our media platforms.
● Delivered exclusive ‘live’ Instagram content
featuring high-profile athletes and personalities,
including NBA stars Austin Rivers, Lance
Stephenson, and Stephon Marbury.
● Social channels also helped amplify public
service announcements from athletes and high-
profile figures to encourage responsible social
distancing behavior.
● theScore on TikTok continues to show explosive
growth, and now surpasses 1 million followers.
12
PRODUCT & CONTENT - SOCIAL
13
Another powerful quarter for theScore esports, with total
video views reaching 78 million (up 92% YoY) and our
YouTube channel surpassing 1.2 million subscribers.
● Total watch hours for theScore esports’ YouTube channel
reached 5.1 million, representing year-over-year growth of
19%.
● Team continues to find new and engaging ways to entertain
fans of competitive gaming.
● Building off the success of our Q1 sponsored content series’
with video game developer Ubisoft and tech company
Nvidia, both of which exceeded viewership targets, we
continue to explore other direct monetization opportunities,
and recently executed direct deals to produce custom content
around the Mortal Kombat Finals, as well as a content
series with food delivery service GrubHub.
PRODUCT & CONTENT - ESPORTS
Financials - Q2 F2020
14
FINANCIALS
● As noted above, the Company is taking significant measures to manage costs in response to the anticipated decline in revenue caused by the disruption to the sports
calendar during the COVID-19 pandemic.
● Revenue for Q2 F2020 was $6.7 million vs. $6.8 million for the same period in the previous year. Strong performances from U.S. and Canadian direct sales were offset
by a decline in programmatic revenue.
● EBITDA loss for the quarter was $8.6 million compared to an EBITDA loss of $2.2 for the same period in the previous year, with the increase largely driven by
expenditures related to the development of our U.S. sports betting business.
● In the second quarter of our gaming operations, we generated $13.8 million in handle, and gross gaming revenue of $443,000. When taking into account promotional
costs and fair value adjustments on unsettled bets, this resulted in negative net gaming revenue of $195,000 for the period.
● Finished Q2 F2020 with cash of $21.5 million and $5 million of revolving credit facility that remains undrawn.
15
x Q2 F2020 Q2 F2019
Total Revenue $6,653 $6,776
Operating Expenses $15,278 $8,965
EBITDA $(8,625) $(2,189)
Q2 F2020 Q2 F2019
Gaming Handle* $13,845 N/A
Gross Gaming Revenue** $443 N/A
Net Gaming Revenue*** $(195) N/A
*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.
Q&A
16

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theScore Q2 F2020 Earnings Presentation

  • 2. 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 February 29, 2020.
  • 3. Comments on COVID-19 Pandemic 3
  • 4. Score Media & Gaming - Q2 F2020 4
  • 5. Q2 F2020 OVERVIEW 5 ● theScore Bet achieved quarter-over-quarter growth in gaming handle (58%) and gross gaming revenue (83%). Momentum supported by ongoing product enhancements and deeper integrations between gaming and media platforms. ● Secured market access to offer mobile sports betting in Colorado via an agreement with a subsidiary of US gaming operator Jacobs Entertainment Inc. ○ Subject to receiving all relevant licenses and approvals, theScore anticipates launching in Colorado later this year, as well as in Indiana under our multi-state market access framework agreement with Penn National Gaming. ○ Continuing to strategically pursue market access opportunities across the U.S. ● Became an Authorized Sports Betting Operator of the National Basketball Association in a multiyear partnership. Provides theScore with access to official NBA betting data and related marketing rights for theScore Bet.
  • 6. Q2 F2020 OVERVIEW 6 ● theScore sports app achieved a new Q2 record for monthly active users sessions of 453 million, year- over-year growth of 15%. This represents 110 sessions-per-user-per-month on a base of 4.1 million monthly active users - the second quarter running MAUs have grown year-over-year. ● theScore’s social content on Twitter, Facebook, and Instagram reached an average of approx. 91 million users in Q2 F2020. theScore’s TikTok account now exceeds 1 million followers after launching in late Q4 F2019 and is now one of the most popular sports media accounts on the platform. ● Total video views of theScore esports’ content surpassed 78 million in Q2 F2020, representing year- over-year growth of 92%. An additional 127,000 YouTube subscribers were added during the period, with channel subscribers now surpassing 1.2 million.
  • 7. COVID-19 RESPONSE The Company is actively responding to the rapidly evolving COVID-19 pandemic by taking measures to ensure the health and safety of its team members and to mitigate the business impact on the Company caused by the unprecedented postponement, suspension or cancellation of global sporting events. ● Effective March 16, 2020 the Company successfully adopted a mandatory work-from-home program, keeping our team at full-strength and remaining fully operational. ● Actively producing sports content designed to keep fans as engaged as possible on our sports app and social channels, while our esports team continues to develop new and innovative video content for our growing cross-channel audience. We also continue to execute on all product roadmap initiatives, including the multi-state rollout of theScore Bet. ● Given the disruption to the sporting calendar, we expect a decline in revenue beginning Q3 F2020 vs. last year. ● The Company is taking significant measures to manage costs, including the reduction in operating expenses and the exploration of applicable government programs. ● This month, every member of our management team from VP level upwards, unanimously agreed to forego 25% of their salary from May 1 to August 31 in exchange for an equivalent grant of Restricted Stock Units (“RSUs”) in the Company, with a variation of this program also being made available on an optional basis to all full-time staff. 7
  • 8. BOARD OF DIRECTORS APPOINTMENT The Company is pleased to announce the appointment of veteran sports business and marketing executive Brian Cooper to its Board of Directors. ● Mr. Cooper, Chairman of award-winning marketing agency MKTG Canada and former senior executive of Maple Leaf Sports and Entertainment, joins the Board with immediate effect. ● An inductee to the Sponsorship Marketing Council of Canada’s Hall of Fame, Mr. Cooper launched and built MKTG Canada, brokering over $1 billion in sponsorships and spearheading its sale to Dentsu Aegis. Prior to that, he served as VP, Business Development and Operations for MLSE, helping launch the Toronto Raptors’ expansion franchise. He also serves as Chair of Canada Basketball, is an advisor to the Wayne Gretzky Foundation, and sits on the Advisory Board of Playmaker Capital. ● Concurrently, the Company also announced that Lorry Schneider and Mark Zega would be stepping down from the Board with immediate effect. The Company thanks them for their service. 8
  • 10. PRODUCT & CONTENT - SPORTS BETTING 10 Quarter-over-quarter growth in both handle and gross gaming revenue was underpinned by our technology-led focus of tightly integrating our media and gaming platforms. ● Continued to build upon the Q1 launch of our FUSE initiative, where media app users can browse and select bets from theScore sports app, before easily navigating to theScore Bet to complete the wager. ● In Q2, we launched support for more sports, more betting options, and expanded our cross-app integrations into MMA, golf and tennis sections. ● Native calls-to-action in our media app led to a 50% increase in cross-app usage between theScore sports app and theScore Bet in Q2 versus the prior quarter. ● Proactively standing-up new markets and support for additional sports on theScore Bet in the wake of disruption to the regular sports calendar, as well as additional props, including those for NFL Draft and eNascar, plus others.
  • 11. PRODUCT & CONTENT - MEDIA 11 On theScore app, we launched innovative new content offerings in response to the disruption on the sports world to continue maximizing engagement. ● Created news rivers focused on the impact of COVID-19 on the sports world, allowing users to subscribe to Breaking News push notifications to stay on top of the latest news as it impacts sports leagues, teams and players. ● Also incorporated in-app quizzes and polls, more long form editorial content, new video franchises, and a free-to-enter contest based around the NFL draft, where users can compete for a top prize of $5,000 in return for correctly predicting the order of the draft.
  • 12. Leveraged theScore’s considerable monthly social reach of ~91 million to drive brand reach and engagement across our media platforms. ● Delivered exclusive ‘live’ Instagram content featuring high-profile athletes and personalities, including NBA stars Austin Rivers, Lance Stephenson, and Stephon Marbury. ● Social channels also helped amplify public service announcements from athletes and high- profile figures to encourage responsible social distancing behavior. ● theScore on TikTok continues to show explosive growth, and now surpasses 1 million followers. 12 PRODUCT & CONTENT - SOCIAL
  • 13. 13 Another powerful quarter for theScore esports, with total video views reaching 78 million (up 92% YoY) and our YouTube channel surpassing 1.2 million subscribers. ● Total watch hours for theScore esports’ YouTube channel reached 5.1 million, representing year-over-year growth of 19%. ● Team continues to find new and engaging ways to entertain fans of competitive gaming. ● Building off the success of our Q1 sponsored content series’ with video game developer Ubisoft and tech company Nvidia, both of which exceeded viewership targets, we continue to explore other direct monetization opportunities, and recently executed direct deals to produce custom content around the Mortal Kombat Finals, as well as a content series with food delivery service GrubHub. PRODUCT & CONTENT - ESPORTS
  • 14. Financials - Q2 F2020 14
  • 15. FINANCIALS ● As noted above, the Company is taking significant measures to manage costs in response to the anticipated decline in revenue caused by the disruption to the sports calendar during the COVID-19 pandemic. ● Revenue for Q2 F2020 was $6.7 million vs. $6.8 million for the same period in the previous year. Strong performances from U.S. and Canadian direct sales were offset by a decline in programmatic revenue. ● EBITDA loss for the quarter was $8.6 million compared to an EBITDA loss of $2.2 for the same period in the previous year, with the increase largely driven by expenditures related to the development of our U.S. sports betting business. ● In the second quarter of our gaming operations, we generated $13.8 million in handle, and gross gaming revenue of $443,000. When taking into account promotional costs and fair value adjustments on unsettled bets, this resulted in negative net gaming revenue of $195,000 for the period. ● Finished Q2 F2020 with cash of $21.5 million and $5 million of revolving credit facility that remains undrawn. 15 x Q2 F2020 Q2 F2019 Total Revenue $6,653 $6,776 Operating Expenses $15,278 $8,965 EBITDA $(8,625) $(2,189) Q2 F2020 Q2 F2019 Gaming Handle* $13,845 N/A Gross Gaming Revenue** $443 N/A Net Gaming Revenue*** $(195) N/A *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.

Editor's Notes

  1. 2018 #s
  2. 2018 #s
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