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Score Media and Gaming - Q4 F2019 Earnings Presentation


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Score Media and Gaming Inc's Q4 and Year-End F2019 Earnings Presentation, as delivered on October 23, 2019.

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Score Media and Gaming - Q4 F2019 Earnings Presentation

  1. 1. Earnings Webcast Q4 and Year-End F2019 October 23, 2019 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 August 31, 2019.
  3. 3. Q4 F2019 OVERVIEW ● Our best-in-class mobile sportsbook theScore Bet is LIVE and taking bets in New Jersey! ● Secured market access for sports betting and i-gaming in an additional 11 states via a market access framework agreement with Penn National Gaming. ● Closed a $40 million investment from Fengate Asset Management to fund the growth and development of our media and sports betting businesses. ● Achieved a record breaking Q4 for audience growth, engagement, and advertising revenue for our media business. ● Appointed senior gaming industry executive Alvin Lobo as Chief Financial Officer. 3
  4. 4. GAMING BUSINESS 4 ● First media company in North America to create and operate a mobile sportsbook. ● Natively built for iOS and Android devices, theScore Bet is a comprehensive mobile sports betting platform, uniquely integrated with our market-leading sports app for a truly holistic sports betting experience. ● And New Jersey is only the start for us...
  5. 5. ● Secured market access rights to offer online and mobile sports betting and i- gaming applications in a further 11 states via a 20-year market access framework agreement with Penn National Gaming Inc. ○ Penn National also took an equity stake in theScore, subscribing for US$7.5 million of Class A shares as part of a US$10 million Private Placement. ● Combined with New Jersey, agreement with Penn National gives us potential market access for mobile gaming to about 30% of U.S. population. ● Continuing to pursue additional market access opportunities for sports betting and i- gaming. 5 GAMING BUSINESS
  6. 6. ● In September, we closed a $40 million strategic investment from Fengate Asset Management, to fund the growth and development of our media and sports betting businesses. ● Fengate is a highly respected and experienced investor across North America, with significant and growing presence in the gaming industry. 6 GAMING BUSINESS
  7. 7. MEDIA BUSINESS SPORTS ● Achieved a new Q4 record for average monthly user sessions on theScore sports app. Average monthly sessions reached 272 million during Q4 F2019, year-over- year growth of 6%, with users opening it an average of 75 times a month each. ● Product development initiatives focused on finalizing the key integration elements between theScore sports app and theScore Bet. ● New Feature: Bet Mode ○ Provides sports app users with instant access to the fastest possible scoring updates and data, with no need to pull-to-refresh, real-time odds, and additional betting content, as well as integrations with theScore Bet for U.S. users. 7
  8. 8. ● Record advertising revenue in Q4 was driven by strong performances from direct sales in Canada and U.S. ● In Canada, secured significant brand integration with sports streaming service DAZN. ○ Introduced a new native unit within matchup pages, designed to drive users to the DAZN site to generate sign-ups around its coverage of the English Premier League and NFL Football. ● Other Q4 direct deal partners included SiriusXM, Twisted Tea, and Under Armour in Canada as well as Microsoft and NBCSN in the U.S. 8 MEDIA BUSINESS SPORTS
  9. 9. ● Further enhanced our sports betting editorial offering. ○ Producing about 40 articles weekly focusing entirely on football betting. ○ Additional betting content also being produced around baseball, soccer, basketball, hockey, golf, MMA, and boxing. ● Expanded our longer-form video content, launching original ‘mockumentary’ Enes the Menace in June, charting NBA star Enes Kanter’s drive to become a professional wrestler under the tuition of WWE Hall of Famer Diamond Dallas Page. This has been shortlisted as a finalist for ‘Best Documentary’ at the Cynopsis Model D Awards. Winners announced next month. 9 MEDIA BUSINESS SPORTS
  10. 10. ● Total video views reached 85 million in Q4 F2019, representing YoY growth of 157%. ● Total watch minutes for theScore esports’ YouTube channel were 384 million, representing YoY growth of 64%. ● An additional 146,000 subscribers were added in Q4 F2019, with our channel now exceeding 950,000 subscribers. ● Named as a finalist in the Cynopsis Model D Awards for ‘Best Category Specific YouTube Channel.’ Winners announced next month. ● Launched inaugural sponsored content series with Ubisoft. ○ Created and published a unique video content package focusing on Ubisoft’s highly popular esports title, Tom Clancy’s Rainbow Six® Siege. ○ Videos spanned our content franchises and included branded integrations from Ubisoft, helping to promote their Pro League and international events. 10 MEDIA BUSINESS ESPORTS
  11. 11. ● theScore’s content on its social channels achieved an average monthly reach of approximately 142 million users in Q4 F2019, representing YoY growth of 150% and a new quarterly record. ● July was our highest month ever for social reach at ~157M. ● Growing brand interest in activating against our social content, including campaigns for Bose, Subway, and Honda. ● Original content activations continue to generate high engagement, including on-the-ground coverage of the NBA Finals and NBA draft in June, the MLB All- Star game in July, and access to Team USA’s camp for four days in August. 11 MEDIA BUSINESS SOCIAL
  12. 12. FINANCIALS 12
  13. 13. FINANCIALS ● Revenue for Q4 F2019 was $6.4 million vs. $5.1 million for the same period in the previous year, with growth primarily the result of strong performances from U.S. and Canadian direct sales. ● Revenue for F2019 was $31.1 million vs. $27.7 million for F2018. ● Expenses for the quarter were $10.6 million compared to $7.4 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. ● Finished Q4 F2019 with cash of $4.0 million and $5 million of revolving credit facility that remains undrawn. ○ Does not reflect $40.0 million strategic investment from Fengate that closed in September. 13 Q4 F2019 Q4 F2018 Revenue $6,407 $5,099 Operating Expenses $10,556 $7,450 EBITDA $(4,149) $(2,351) F2019 F2018 Revenue $31,121 $27,743 Operating Expenses $37,615 $30,125 EBITDA $(6,494) $(2,382)
  14. 14. Q&A 14