Score Media and Gaming is a digital media company that offers sports media and betting platform for sports enthusiasts. It virtually delivers sports news, data, scores, sportsbooks, etc. It has a sports betting mobile application, ‘theScore Bet’ which provides fans an interesting betting experience.
With a public listing on the TSX Venture Exchange, Score creates and distributes innovative digital content through its other digital platforms.
Impact of the pandemic on Score
TheScore began F2020 with a bang, launching the first-ever mobile sportsbook in the history of North America. With the launch of theScore Bet application in New Jersey before the NFL Football tournament and generated $8.8 million in the handle in Q1 2020. After New Jersey, the company expects to launch the app in several other states with Indiana next on the list.
Q1 2020 also witnessed the launch of FUSE an innovative integration linking its media platforms to betting applications. Chat pages saw additional integrations with ongoing innovations. This further enhanced navigation between theScore’s media and gaming platforms after being rolled-out throughout F2020.
In Q1 and Q2 2020, average monthly sessions reached 523 million and 453 million with year-over-year growth of 11% and 15% respectively. The company continued to expand its betting app theScore and was granted a temporary license for internet sports betting in Colorado and Indiana.
Throughout Q2 and Q3, because of the COVID-19 pandemic and the sudden disruption in the sports calendar, the company responded quickly and decisively while keeping the safety of employees and workers at the top-most priority. It aggressively managed costs and availed government programs to come out of the situation with minimum casualties.
Outreach and growth
Q3 2020 attracted a lot of attention towards the Score sports’ platforms as they focused on delivering innovative and interactive content formats. This helped to retain nearly 75% of monthly active users compared to the same period last year, with users continuing to engage with the app daily.
In this financial quarter, the total video views reached 145 million and year-over-year growth of 113%. Total watch hours for theScore sports’ YouTube channel reached a new all-time quarterly record of 9.7 million.
TheScore also witnessed growth on various social media platforms like Twitter, Facebook, and Instagram, achieving an average monthly reach of approximately 104 million. In addition, theScore’s TikTok account grew by over 80% in Q3 F2020 and now has over 1.7 million followers.
How did Score fare in 2020
The company handled the major impact of the COVID-19 pandemic during this quarter. It also availed the CEWS Canada Emergency Wage Subsidy to mitigate the situation and handle costs effectively. In April 2020, every member of theScore’s senior management team agreed to forego 25% of their salary from May 1 to August 31, 2020, in exchange for an equivalent grant of Restricted Stock Units (RSUs) in the Company.
Q4 2020 started with a positive remark for the company. With sports leagues back in action, the company is in a strong position to lead its way in Q1 F2021. The unique formula of fusing media with gaming is resonating with fans, with the total gaming handle on theScore Bet up over 500% year-over-year in September.
Colorado and Indiana were the first states where theScore Bet was launched. It is an innovative multi-state account and wallet functionality delivering a seamless cross-state experience. It aims to mobilize sports fans as it expands across the United States via a single mobile app. The company expects to launch theScore Bet next in Iowa in early calendar 2021.
Score’s financial outlook
Score revised its goals and strategy in 2020 to face headwinds due to the pandemic outbreak. The total revenue in Q4 2020 was $2.5 million as compared to $6.4 million in the same period last year. Similarly, the total EBIDTA loss was $8.3 million vis-a-vis to $4.1 million in 2019.
This is a direct impact of the disruption of the sports calendar due to the COVID-19 pandemic. The company’s media and gaming operations are thriving and are up for a strong start in early Q1 F2021. TheScore also graduated from the TSXV to the Toronto Stock Exchange TSX which started trading on 15th September 2020.