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Score Media and Gaming Inc. Q1 F2020 Earnings Presentation

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Presentation which accompanied theScore's Q1 F2020 earnings webcast.

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Score Media and Gaming Inc. Q1 F2020 Earnings Presentation

  1. 1. Earnings Webcast Q1 F2020 January 22, 2020 1
  2. 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 November 30, 2019.
  3. 3. Q1 F2020 OVERVIEW ● The first sports media company in North America to create and launch a mobile sportsbook! ● Tightly integrated with our flagship sports app, the launch of theScore Bet in New Jersey created a unique media and gaming ecosystem. 3
  4. 4. Q1 F2020 OVERVIEW ● Our innovative integration of media and gaming sets us apart from the competition. ● Over three-quarters of fans who placed a wager on theScore Bet in Q1 came directly from theScore sports app. ● Media app users proving more valuable to our gaming operations in terms of handle, GGR, and retention. ● Rolling out new and innovative integrations to further strengthen the bond between our sports and gaming platforms. 4
  5. 5. Q1 F2020 OVERVIEW ● FUSE by theScore - a new suite of seamless integrations linking our media and sports betting platforms. ○ Exclusive to theScore, users can now build a betslip directly from theScore’s sports app then complete their wager on theScore Bet. ○ FUSE is only the beginning of these integrations. New product features and cross- promotional capabilities to be rolled-out throughout F2020 and beyond. 5
  6. 6. Q1 F2020 OVERVIEW ● Continuing to execute on the multi- state rollout of theScore Bet. ● Anticipate launching theScore Bet in Indiana this year under our multi-state market access framework agreement with Penn National Gaming.* ● Continuing to actively pursue additional market access in additional states, including Colorado which recently voted to legalize sports wagering. ● Closely monitoring regulatory developments in Ontario where the provincial government is pursuing expansion of sports betting and i- gaming in the province. 6 *Subject to receiving all relevant licenses and approvals.
  7. 7. Q1 F2020 OVERVIEW ● Announced multi-year partnership to become an authorized sports betting operator of the National Basketball Association (“NBA”). ○ Deal provides theScore with access to official NBA betting data, league marks and logos for use across our media and sports betting platforms. ● Further strengthened our leadership team to support the multi- state rollout of theScore Bet, appointing experienced gaming executives Alvin Lobo as CFO and Josh Sidsworth as General Counsel and Chief Compliance Officer. 7
  8. 8. Q1 F2020 OVERVIEW ● We are live and taking bets! ● Sports fans love theScore Bet and our integrated approach to media and betting. ● Building on this base with deeper integrations and cross-promotional capabilities. ● Now preparing to launch theScore Bet in additional states, while capitalizing on our early momentum in New Jersey. 8
  9. 9. PRODUCT & CONTENT ● Success of theScore’s gaming business will be product and technology led, with a focus on a best-in-class betting offering that is deeply integrated with theScore’s highly engaging sports media platform. ● Achieved all-time record quarter for engagement on our sports app, recording 523 million average monthly user sessions, or 123 average sessions-per-user on a base of 4.3 million users. ● Launched FUSE suite of integrations in November, connecting theScore and theScore Bet, ensuring a seamless journey for users from one platform to the other. 9
  10. 10. PRODUCT & CONTENT ● General UI improvements around live bets and promotional offers. ● Added support for other sports, including markets for combat sports, tennis, and golf. ● Continue to develop key infrastructure to facilitate multi-state rollout of theScore Bet, including account, wallet, payments and additional cross-promotional components. ● Focus for Q2 F2020 includes: ○ Enhanced personalization and engagement features including push notifications. ○ Even deeper integrations with theScore sports app via continued FUSE innovations. 10
  11. 11. 11 Strong results from direct sales in Q1 F2020 substantially offset a decline in programmatic revenues in the quarter. ● Executed major activations for returning clients including DAZN, Audi, Disney and NBC Sports. ● New clients include Pfizer, Under Armour, Uber Eats and Microsoft. ● Social campaigns booked with brands including Puma, Head and Shoulders, Enterprise, and Trojan. MEDIA SALES
  12. 12. 12 Solid quarter of growth for theScore’s social content. ● Sports content across Twitter, Facebook, and Instagram achieved an average monthly reach of approximately 97 million in Q1 F2020, representing year-over-year growth of 44%. ● Continued on-the-ground presence at events, including the Toronto Raptors’ championship ring ceremony and Red Bull USA Basketball 3X Regionals. SOCIAL MEDIA
  13. 13. 13 theScore esports continued its strong growth trajectory in Q1 F2020 and reinforced its position as a leader in competitive gaming coverage. ● theScore esports has now surpassed 1 million subscribers on its YouTube channel. ○ The milestone is a result of the channel’s strategy to break-down the barriers that often make the subject of esports inaccessible for many, producing content for hardcore and casual fans alike. ○ Added over 125,000 subscribers in Q1 F2020. ● Total video views reached 75 million in Q1 F2020, representing year-over- year growth of 84%. ● Total watch hours for theScore esports’ YouTube channel reached 5.6 million, representing year-over-year growth of 28%. ESPORTS
  14. 14. 14 ● Ramped up the ‘Don’t @ Me’ franchise to 3-5 episodes per week, and introduced new franchise ‘Spotlight’, shining a light on what’s trending in esports. ● Completed inaugural sponsored content series with video game developer Ubisoft, which included videos spanning various content franchises and branded integrations helping to promote Ubisoft’s Pro League and international events. ● Launched partnership with NVIDIA, a tech company that designs and manufactures computer gaming products. Created branded integrations on the channel as well as custom content on NVIDIA’s site. ESPORTS
  15. 15. FINANCIALS 15
  16. 16. FINANCIALS ● Revenue for Q1 F2020 was $9.2 million vs. $9.5 million for the same period in the previous year. Strong performances from U.S. and Canadian direct sales were offset slightly by a decline in programmatic revenue. ● Expenses for the quarter were $14.0 million compared to $8.5 million 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 first quarter of our gaming operations, we generated $8.8 million in handle, and gross gaming revenue of $242,000. When taking into account promotional costs and fair value adjustments on unsettled bets, this resulted in negative net gaming revenue of $26,000 for the period. ● Finished Q1 F2020 with cash of $32.1 million and $5 million of revolving credit facility that remains undrawn. 16 Q1 F2020 Q1 F2019 Total Revenue $9,219 $9,475 Operating Expenses $14,051 $8,510 EBITDA $(4,832) $965 Q1 F2020 Q1 F2019 Gaming Handle* $8,778 N/A Gross Gaming Revenue** $242 N/A Net Gaming Revenue*** $(26) 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.
  17. 17. Q&A 17

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