– Company achieves positive EBITDA for first time in history
TORONTO, January 11 2018 – theScore, Inc. (TSX Venture: SCR) (“theScore”) today announced the financial results for the three months ended November 30, 2017 in accordance with International Financial Reporting Standards (“IFRS”).
In Q1 F2018 the Company achieved the first EBITDA positive quarter in its history. EBITDA was $0.5M, versus a loss of $0.4M for the same period the previous year.
“After previously forecasting that we would be EBITDA positive in F2018, we are very pleased to get this fiscal year off to a strong start, something which puts a solid foundation in place for the rest of the year,” said John Levy, CEO and Founder of theScore.
The Company achieved revenue of $8.4M for Q1 F2018 versus $8.5M for the same period the previous year. Increased US programmatic revenue and Canadian direct sales revenue was offset by lower direct sales in the US.
Average monthly active users of theScore app[*] for Q1 F2018 were 4.3M versus 4.4M for the same period the previous year, while average monthly app sessions-per-user were 103 versus 102 for Q1 F2017.
theScore app on iOS showed positive momentum this quarter, breaking new single-month user records in both October and November. For Q1 F2018, monthly active users of theScore app on iPhone and iPad were up by 6% for the same period the previous year. Monthly active users of theScore app on Android were down by 11% over the previous year.
“Following the launch of our newly designed flagship app at the end of Q4, we’ve seen some extremely encouraging growth on our iOS platforms, twice breaking records for users in a single month in Q1,” said Mr. Levy. “While the change in Android users is reflective of trends we’ve seen with other apps in the free sports category in Google Play over the past year, we believe a combination of product and marketing initiatives will enable us to tackle this platform-specific challenge head-on by improving both user acquisition and retention.
“Our priority now is building on this momentum through the continued improvement of our offering through ongoing experimentation and maintaining our regular bi-weekly release cycles to get updates into the hands of sports fans as quickly as possible.”
theScore’s esports team also reinforced its focus on the creation of original video content during Q1 F2018, doubling-down on the production of successful video franchises which regularly generate six-figure viewing figures across YouTube, Facebook and other social platforms. In Q1 F2018, theScore esports recorded a total of 18M video views, up from 3.5M for the same period the previous year.
theScore’s Emerging Platforms team continued to work on developing for new platforms and technologies to further amplify theScore brand and product offering. In Q1 F2018, theScore launched its Skill for Amazon Alexa across North America, continued to grow and improve its chatbot for Facebook Messenger and, only last week, launched the first-ever fantasy sports game for Facebook’s Instant Games platform on Messenger.
“We continue to be encouraged by the growth potential we’re seeing with our esports video and emerging platforms initiatives, with the recent launch of our pioneering fantasy sports game on Instant Games being a prime example,” said Mr. Levy. “This, combined with the strong reach of more than 30M people a month across our social platforms, enables us to focus on our core app business while also looking to the future to ensure theScore stays one step ahead of the ever-evolving demands of sports fans.”
theScore announced that, if the proposed amendments to its stock option plan are approved by shareholders at today’s annual and special meeting, the board of directors intends to grant today 9,940,000 options to acquire Class A subordinate voting shares to employees of the Company, including 1,660,000 options to directors and officers of the Company. Assuming the requisite shareholder approval is obtained, options will be granted to the following directors and officers: Norwest Video Inc. (600,000 options); Benjamin Levy (500,000 options); Ralph Lean (80,000 options); John Albright (80,000 options); Mark Scholes (80,000 options); Lorry Schneider (80,000 options); Thomson Associates Inc. (80,000 options), Mark Zega (80,000 options) and Kirstine Stewart (80,000 options). Each option will be exercisable for one Class A Subordinate Voting Share of theScore at an exercise price of $0.145 in accordance with the terms and conditions of the Company’s employee stock option plan.
theScore will be hosting a conference call at 8:30am EST on Thursday, January 11. Management will review the Company’s Q1 F2018 results, followed by a question and answer session.
Conference Call Dial-In Numbers
Toronto: (+1) 416 764 8688
Toll Free North America: (+1) 888 390 0546
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888 390 0541
Playback Passcode: 513838 #
The conference call will also be webcast live here.
For more information:
Sr. Manager, Communications
Tel: 416.479.8812 ext. 2366
Chief Financial Officer
Tel: 416.479.8812 ext. 2206
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.
[*] User metrics for theScore app do not include audience or engagement numbers from theScore esports platforms, Squad Up, or products from its Emerging Platforms team, including theScore Bot for Facebook Messenger.