Despite a net loss of $17.57 million, betting interest on theScore Bet platform is reaching new highs according to Score Media and Gaming’s latest results for its earnings for the three and six months ended February 28, 2021
The report stated that total revenue for Q2 F2021 was $5.6 million, with record Q2 media revenue partially offset by $2.4 million in negative net gaming revenue. The quarter’s media income was $8 million, up from $6.8 million the previous year, a 17 percent boost.
The total gaming handle for the second quarter was $81.6 million, with gross gaming sales of $0.4 million. This resulted in negative net gaming income of $2.4 million after advertising charges and fair value fluctuations on unsettled bets were factored in.
In Q2 F2021, EBITDA loss was $12.9 million, compared to $8.6 million in the same quarter last year. Additional expenditures incurred in conjunction with the company’s continued expansion of its gaming activities, as well as costs and professional support fees related to the recently completed US initial public offering, according to the report.
John Levy, the company’s chairman and CEO, told investors: “We achieved record gaming handle and another quarter of solid media revenue growth in our fiscal 2021 second quarter. The strong second quarter results highlight theScore’s ongoing momentum and our users’ active, growing engagement with our mobile offerings.
“Second quarter handle of $81.6m on theScore Bet grew 491 percent year-over-year and 46 percent over the first quarter. We also recorded our highest-ever second quarter media revenue, with 17 percent year-over-year growth driven by our compelling content as well as our outstanding North American reach and audience engagement.”
He continued: “Following the launch of theScore Bet in Iowa in mid-February, our mobile sports betting platform is now live in four states as our market rollout continues on schedule.
“We’re successfully building our user base and leveraging our media audience, while simultaneously welcoming new users to our platform as demonstrated by the year-over-year and quarterly sequential increases in gaming handle this quarter, including a nearly 200% increase in our New Jersey handle compared to the year-ago period.
“Through our recent agreement with Caesars Entertainment we now have sports betting market access in Illinois, the sixth most populous US state.”
Levy also said that the firm raised US$186.3 million in gross proceeds from its US IPO in the second quarter, which it plans to put into the continuing development of its integrated sports betting and media technology network.
“The new capital provides additional resources to further execute on our strategies to integrate sports betting and content to drive deep user engagement and expand our market access,” he said.
“We will continue to enhance our media and betting ecosystem through investments in technology to further develop user personalisation, unique betting offerings, and in-game prop bets, which are expected to be a significant driver of US sports betting growth.
“At the same time, we are working to expand our access into new US states while continuing our preparations for the anticipated legalization of single-game sports wagering in Canada.
“We are very encouraged by the recent momentum in support of Bill C-218, which would legalize single-game sports betting in Canada. Our popular brand and dominant Canadian market position will enable theScore to participate as a market leader in what is expected to be a very large addressable market, including in our home province of Ontario.”
On the outlook, Levy advised: “Our unique combination of media and betting is a powerful differentiator in a growing marketplace. We intend to leverage our position as the only digital sports media company in North America that operates a sports betting platform to further grow our US business and capture meaningful market share in Canada when the market opens.
“With our fully integrated sports media and betting experience and technology focus, we are perfectly positioned to efficiently acquire and engage new customers while driving strong customer loyalty and attractive margins which will help drive the long-term enhancement of shareholder value.”