theScore Reports F2018 Q4 and Year-End Results
TORONTO, Oct. 17, 2018 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and twelve months ended August 31, 2018 in accordance with International Financial Reporting Standards ("IFRS").
Total revenue for the twelve months ending August 31, 2018 grew to $27.7 million, versus $26.3 million in F2017. Revenue for Q4 F2018 grew to $5.1 million versus $4.8 million in the same period the previous year.
EBITDA loss for the twelve months ending August 31, 2018 improved to $2.4 million compared to a loss of $5.9 million in F2017. EBITDA loss for Q4 F2018 was $2.4 million, compared to a loss of $1.9 million for the same period the previous year. EBITDA loss in Q4 was due to a combination of increased facilities, administrative and other expenses, including expenses relating to U.S. sports betting business development activities, as well as advertising sales for the quarter which, despite year-over-year growth of 6%, were below expectations.
Monthly active users of theScore mobile app on iOS grew by 12.5% in Q4 F2018 compared to the same period the previous year, including growth of almost 17% in July, driven in part by theScore's coverage of the 2018 FIFA World Cup.
As a result, total average monthly active users of theScore mobile app grew by 5% to 3.7 million in Q4 F2018 versus 3.5 million for the same period in F2017, with iOS growth partially offset by lower monthly active users on Android. Total average monthly app sessions per user for theScore app on iOS and Android for Q4 F2018 were 70 compared to 73 for the same period last year.
Q4 F2018 highlights included:
-- Total video views of theScore's esports content reached almost 33
million for Q4 F2018, year-over-year growth of 117%, with its YouTube
channel surpassing 400,000 subscribers as theScore reinforced its
position as the leading independent provider of competitive gaming
coverage.
-- theScore's content reached approximately 55 million users per month in
Q4 F2018 across its social channels, serving to further amplify theScore
brand with sports fans globally.
-- theScore continued to pursue opportunities relating to the U.S. Supreme
Court repeal of the Professional and Amateur Sports Protection Act
(PASPA), which allowed individual states in the U.S. to explore
legalized and regulated sports betting models. As part of these ongoing
initiatives, the Company appointed senior interactive gaming and sports
betting executive David Wang as a Senior Advisor.
theScore Founder and CEO John Levy said: "This was a very strong quarter for audience growth for theScore, with positive app user numbers supported by record-breaking reach across our social and emerging platforms. Our esports content also reached new heights, smashing through 400,000 subscribers on our YouTube channel and more than doubling total video views in one year - a testament to the incredible content being produced every day.
"On top of this, we continued to pursue opportunities relating to the legalization of sports betting in the United States. We see exciting near-term and long-term opportunities for theScore thanks to the unique advantages of our large and engaged audience and our expertise in delivering great mobile sports experiences."
Board of Directors Update
The Company announced that Kirstine Stewart is stepping down from theScore's Board of Directors with immediate effect after accepting a position with the World Economic Forum in Geneva, Switzerland. Ms. Stewart had been a member of theScore's Board since June 2016. Management and the Board of Directors thanks her for her contribution and wishes her every success in her new role.
theScore will host a conference call at 4:30pm ET on Wednesday, October 17 where management will review the Company's Q4 and Year End F2018 results, followed by a Q&A session:
Conference Call Dial-In
Toronto: (+1) 416 764 8688
Toll Free North America: (+1) 888 390 0546
The conference call will also be webcast live. Register now here.
Instant Replay
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888 390 0541
Playback Passcode: 291628 #
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About theScore Inc.
theScore's mission is to create highly-engaging digital products and content that empower the sports fan's experience. Its flagship mobile app 'theScore' is one of the most popular multi-sport news and data apps in North America, serving millions of fans a month. The Company also creates innovative digital sports experiences through its web, social and esports platforms.
Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "may", "would", "could", "will", "believes", "plans", "anticipates", "estimates", "expects" or "intends" and other similar statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Such statements reflect theScore's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including among other things, those which are discussed under the heading "Risk Factors" in the Company's Annual Information Form and Short-form Prospectus as filed with the TSX Venture Exchange and available on SEDAR at www.sedar.com and elsewhere in documents that theScore files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results could differ materially from the expectations expressed in these forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as required by applicable law or regulatory requirements.
theScore, Inc
Consolidated Statements of
Financial Position
(in thousands of Canadian
dollars)
As at August 31,
2018 2017
ASSETS
Current assets:
Cash and cash equivalents $
6,347 $
10,114
Accounts receivable 5,839 5,578
Prepaid expenses and deposits 1,078 1,238
13,264 16,930
Non-current assets:
Property and equipment 1,453 1,789
Intangible assets 6,074 6,292
Tax credits recoverable 1,616 1,616
9,143 9,697
Total assets $
22,407 $
26,627
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $
3,710 $
2,801
Non-current liabilities:
Deferred lease obligation 415 490
Shareholders' equity 18,282 23,336
Commitments
Total liabilities and
shareholders' equity $
22,407 $
26,627
theScore, Inc
Consolidated Statements of
Comprehensive Loss
(in thousands of Canadian
dollars, except per share
amounts)
Years ended August 31,
2018 2017
Revenue $
27,743 $
26,348
Operating expenses:
Personnel 16,212 16,855
Content 1,771 1,746
Technology 2,906 2,478
Facilities, administrative and
other 6,200 6,050
Marketing 2,490 3,585
Depreciation of property and
equipment 418 481
Amortization of intangible assets 3,391 2,600
Stock based compensation 546 789
33,934 34,584
Operating loss (6,191) (8,236)
Finance income, net 277 (240)
Loss on Investment (760)
Net and comprehensive loss $
(5,914) $
(9,236)
Loss per share -basic and
diluted $
(0.02) $
(0.03)
theScore, Inc
Consolidated Statements of
Cash Flows
(in thousands of Canadian
dollars)
Years ended August 31,
2018 2017
Cash flows used in operating
activities
Net and comprehensive loss $
(5,914) $
(9,236)
Adjustments for:
Depreciation and amortization 3,809 3,081
Stock based compensation 546 789
Loss on investment 760
(1,559) (4,606)
Change in non-
cash operating
assets and
liabilities:
Accounts receivable (261) (252)
Tax credits recoverable 3,061
Prepaid expenses and deposits 160 (230)
Accounts payable and accrued
liabilities 908 (2,379)
Deferred lease obligation (74) (5)
733 195
Net cash used in operating
activities (826) (4,411)
Cash flows from financing
activities
Exercise of stock
options 314 54
Net cash from financing
activities 314 54
Cash flows used in investing
activities
Additions to
property and
equipment (82) (129)
Additions to
intangible assets (3,173) (3,085)
Tax credits
recoverable 2,131
Net cash used in investing
activities (3,255) (1,083)
Decrease in cash and cash
equivalents (3,767) (5,440)
Cash and cash equivalents,
beginning of period 10,114 15,554
Cash and cash equivalents,
end of period $
6,347 $
10,114
EBITDA
Three months ended
Year ended
August 31, August 31, August 31, August 31,
2018 2017 2018 2017
Net and comprehensive loss
for the period $
(3,137) $
(3,418) $
(5,914) $
(9,236)
Adjustments:
Depreciation and amortization 857 935 3,809 3,081
Finance expense (income), net (71) 587 (277) 240
EBITDA (loss) $
(2,351) $
(1,896) $
(2,382) $
(5,915)
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SOURCE theScore, Inc.
