For the three and twelve months ended August 31 , 2020, Score Media and Gaming has released its financial results, with COVID taking an unavoidable toll on the main performance metrics of the business.
Although by launching its gaming operations , the company had a flying start to 2020, the financials provide a strong indication of the effect the pandemic has had on the company. Total revenue was $2.5 m for Q4 F2020 ($6.4 m 2019), while total revenue was $20.7 m ($31.1 m 2019) for the 12 months ended August 31 , 2020.
“This anticipated decline in revenue for the period reflects the direct impact of the disruption to the sports calendar caused by the COVID-19 pandemic,” said the firm.
Elsewhere, for the 12 months ended August 31 , 2020, the game handle was $14.8 m in Q4 F2020 and $41.5 m. In Q4 F2020, gross gaming revenue was ($0.5)m and for the 12 months ended August 31 , 2020, $253,000. This resulted in negative net gaming income of $1.2 million and $1.4 million for the three and 12 months ended August 31 , 2020, respectively, after taking into account advertising expenses and fair value changes on unsettled bets.
In Q4 F2020, the EBITDA loss was $8.3 million (loss of $4.1 million 2019), while the EBITDA loss was $30.5 million (loss of $6.5 million 2019) for the 12 months ended August 31 , 2020. The company blamed the rise in the loss of EBITDA on the effect on sales attributable to COVID-19 for the period and the consequence of increased expenses incurred in connexion with the expansion of its gaming activities compared with the previous year.
John Levy, CEO and Founder, stated: “Fiscal 2020 began with the momentous launch of our gaming operations, with theScore Bet debuting in New Jersey. We were seeing great early momentum when, along with the rest of the industry, we had to adjust to the global disruption to sports brought on by the COVID-19 pandemic.
“Notwithstanding these challenges, we successfully navigated this period by keeping our team at full strength, preserving the vast majority of our user base, and diligently preparing for the return of sports, culminating in the successful multi-state launch of theScore Bet into both Colorado and Indiana last month.
“With sports leagues now back in action, our media and gaming operations are thriving again in early Q1 F2021. Our unique formula of fusing media with gaming is resonating with fans, with total gaming handle on theScore Bet up more than 500% year-over-year in September with that momentum continuing into October too. We’re also excited by the early momentum in Colorado and Indiana, contributing to an extremely strong start to our new fiscal year across gaming and media.”
Media advertising revenue set a new all-time high for a single month in September, according to Levy, as advertisers clamoured to engage with fans around this exceptionally busy and special sports calendar.
He said: “While Q4 audience and revenue was still impacted by the mass disruption to sports, media app users and engagement are now returning to pre-pandemic levels. Furthermore, we registered another all-time quarterly record for video views on our esports platforms, with an increasing number of high-profile brands activating against our market-leading coverage of the fast-growing competitive video gaming scene.
“We are in a strong position to build on this momentum throughout F2021, further leveraging the power of media and gaming, bringing theScore Bet to more states, and exploring opportunities to add to our existing market access footprint.”