Gross sales delays for theScore regardless of Bump In Deal with
Despite an increase in the second quarter of the fiscal year The score still does not generate any income from sports betting.
TheScore has a 491% The company announced Tuesday that its second quarter results were up year-over-year. The $ 81.6 million Bet on theScore Bet was also a 46% Increase in the first quarter.
However, those huge gains did not move revenue. Net sales from games were – –$ 2.4 million with advertising costs and unresolved bets deducted from the $ 400,000 Gross gaming revenue. The company reported net gaming revenue of –$ 1.4 million in fiscal year 2020 and –$ 2 million in the first quarter of this year.
Questions about sales challenges
An analyst question during earnings view focused on the low sales numbers:
“We’re strategically building this business and we’re excited to see the bets rising dramatically,” said theScore Founder and CEO John Levy said. “Until you reach a critical mass, you are vulnerable to fluctuations in the revenue generated by betting.
“We are absolutely confident that this will normalize over time and we will see the fruits of our labor generating these state-to-state bets.”
TheScore has one EBITDA loss of $ 12.9 million in the quarter. The earnings report indicated the continued expansion of the gaming business and the administrative costs of operating it US IPO as the reason for the loss.
Levy remains optimistic
Despite the losses and arrears in revenue, theScore executives remained optimistic throughout the call. With more US Sports betting market starts on the horizon, the US IPO and Canada Levy is getting closer to single bets and likes the company’s position.
“Our gaming business has been extremely active and has continued to position itself to continue growing,” said Levy. “We are in a great position to leverage our two decades of experience to lead a developing industry and capitalize on the great opportunities we see in both the US and Canada.”
The media arm has a 17% Jump in sales compared to the previous year. The $ 6.3 million Revenue was a record for the company’s media business in the second quarter. Overall, the user sessions of the media apps increased 8th% Year after year up 488 million in the quarter.
Optics gain for theScore?
While the numbers are striking, theScore in was only live New Jersey in his 2020 second quarter. TheScore’s New Jersey grip has increased 195% Year for year.
The company started in both Colorado and Indiana End of 2020. With the start in the second quarter in Iowais the company’s betting app live in four states.
It also secured market access in Illinois through an agreement with Caesars Entertainment March. The company now has five market access partners, which, according to John Levy, indicates the industry’s trust in the company and the platform.
“Our goal is to be a national operator,” said theScore president and COO Benjie Levy said. “We are pursuing market access agreements in the US.”
theScore US IPO results
in the March, theScore sold 6.9 million Class A Shares in its US IPO. The offer was raised $ 186.3 million.
The company plans to use the funds to continue expanding its sports betting and media platforms.
“The new capital provides additional resources to further implement our sports betting and content integration strategies to drive deep user engagement and expand our market access,” said John Levy. “We will continue to improve our media and betting ecosystem by investing in technology to advance user personalization, unique betting offerings and in-game prop betting that are expected to be a major driver of US sports betting growth represent. “
Canada remains a great opportunity for theScore
The Canadian Parliament is expected to talk about sports betting again later this month. As theScore’s home market, company executives are excited about the opportunity.
According to the company’s investor presentation in March, the Canadian gaming operator’s sales potential could be anywhere between 1 and 2 $ 4 billion and $ 5 billion yearly.
TheScore is the No. 1 sports media app in Canada using 3.75 million active users according to investor presentation.
“This is our home,” said Benjie Levy. “Ontario is a home base and a huge user base. More importantly, we have a brand and legacy relationship with customers that goes back 20 years. We can’t wait to unleash the power of it when the market opens. “