- Mobile sports company achieves record 130% revenue growth -
TORONTO, Jan. 14, 2016 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three months ended November 30, 2015 in accordance with International Financial Reporting Standards ("IFRS").
The Company posted record quarterly revenue of $7.0 million compared to $3.0 million in the same period the previous year, an increase of 130%. Advertising revenue grew to $7.0M from $2.8M, an increase of 150%.
Revenue growth was powered by theScore's programmatic and direct sales business, driven in turn by strong user engagement within theScore's mobile apps.
Users of theScore's mobile applications[*] reached a record 4.7 million average monthly active users, an increase of 10% over the same period in F2015. Average monthly user sessions of theScore's mobile applications reached 415 million, up by 51% compared to the same period in F2015. Audience for the Company's eSports platforms, which launched in March 2015, reached a milestone of more than 750K users for the first time in Q1 F2016.
"This was the best-ever quarter in theScore's history," said John Levy, Founder and CEO of theScore. "We more than doubled our revenue, a direct result of how often fans are now engaging with theScore's mobile apps. They're opening us 80 to 90 times a month each on average - and this incredible engagement is driving powerful revenue growth."
"These results, combined with the continued growth of our eSports platform and the recent launch of QuickDraft, our unique fantasy sports game, has given us a great start to what we expect will be a very exciting 2016."
Adjusted EBITDA loss for the three months ended November 30, 2015 was $2.3 million compared to $1.5 million in the same period the previous year. Net and comprehensive loss for the three months ended November 30, 2015 was $3.1 million compared to $2.0 million in the same period the previous year. This was primarily a result of increased personnel and marketing costs associated with theScore's eSports and fantasy sports' businesses.
theScore will be hosting a conference call at 8:30am EST on Thursday, January 14. Management will review the Company's Q1 F2016 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
Instant Replay
Toronto: (+1) 416 764 8677
Toll Free: North America (+1) 888 390 0541
Playback Passcode: 125806 #
A live webcast of the call can be accessed by clicking here.
theScore will also be hosting its Annual General Meeting at 11:00am EST on Thursday, January 14 at the Company's Toronto office at: 500 King Street West, Fourth Floor, Toronto, Ontario, M5V 1L9.
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About theScore Inc.
theScore, Inc. is an independent creator of mobile-first sports experiences, connecting fans to what they love through an addictive combination of comprehensive and personalized real-time news, scores, stats and alerts via its mobile sports platforms theScore and theScore eSports and fantasy sports contests via QuickDraft.
Non-IFRS Financial Measures
In addition to disclosing results in accordance with IFRS as issued by the International Accounting Standards Board ("IASB"), theScore also provides supplementary non-IFRS financial measures as a method of evaluating the Company's performance. theScore utilizes earnings before interest, taxes, depreciation, amortization and acquisition costs ("Adjusted EBITDA") to measure operating performance. theScore's definition of Adjusted EBITDA excludes depreciation and amortization, finance income, income taxes, and acquisition costs which in theScore's view do not adequately reflect its core operating results. Adjusted EBITDA is used in the determination of short-term incentive compensation for all senior management personnel. The Company revised the non-GAAP measure in 2015 from EBITDA to adjusted EBITDA, as a result of the acquisition costs incurred related to Swoopt. Adjusted EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies.
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 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 and user engagement metrics in the current and comparative periods excludes the following platforms no longer supported by theScore: (i) theScore app on BlackBerry 7, BlackBerry Playbook, Kindle Fire and Windows Phone 7; and (ii) theScore's legacy soccer application, ScoreMobile FC.
theScore, Inc.
Condensed Consolidated Interim Statements of Financial
Position
(in thousands of Canadian dollars)
(unaudited)
November 30, August 31,
2015 2015
---- ----
ASSETS
Current assets:
Cash and cash equivalents $24,829 $31,841
Accounts receivable 6,487 3,376
Tax credits recoverable 4,777 4,777
Prepaid expenses and deposits 859 842
---
36,952 40,836
Non-current assets:
Property and equipment 2,245 2,123
Intangible assets 7,382 7,361
Investment 760 760
Tax credits recoverable 1,399 1,399
-----
11,786 11,643
------ ------
Total assets $48,738 $52,479
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $3,690 $4,583
Non-current liabilities:
Deferred lease obligation 501 510
Shareholders' equity 44,547 47,386
Commitments
Total liabilities and
shareholders' equity $48,738 $52,479
======= =======
See accompanying notes to consolidated financial statements
theScore, Inc.
Condensed Consolidated Interim Statements of Comprehensive
Loss
Three months ended November 30, 2015 and 2014
(in thousands of Canadian dollars, except per share
amounts)
(unaudited)
Three months ended
November 30,
2015 2014
---- ----
Revenue $7,003 $3,046
Operating expenses:
Personnel 4,595 2,475
Content 640 234
Technology 594 408
Facilities, administrative and other 1,532 907
Marketing 1,986 518
Depreciation of property and
equipment 149 126
Amortization of intangible assets 614 458
---
10,110 5,126
Operating loss (3,107) (2,080)
Finance income (48) (65)
Net and comprehensive loss $(3,059) $(2,015)
========
Loss per share - basic and diluted $(0.01) $(0.01)
=======
See accompanying notes to consolidated financial statements
theScore, Inc.
Condensed Consolidated Interim Statements of Cash
Flows
(in thousands of Canadian dollars)
(unaudited)
Three months
ended November
30,
2015 2014
---- ----
Cash flows used in operating activities
Net and
comprehensive
loss $(3,059) $(2,015)
Adjustments for:
Depreciation and amortization 763 584
Share-based compensation 182 176
--- ---
(2,114) (1,255)
------ ------
Change in non-
cash operating
assets and
liabilities:
Accounts receivable (3,111) (1,297)
Tax credits recoverable - (340)
Prepaid expenses and deposits (17) 2
Accounts payable and accrued
liabilities (893) (695)
Deferred lease obligation (9) 4
--- ---
(4,030) (2,326)
------ ------
Net cash used in operating
activities (6,144) (3,581)
------ ------
Cash flows from financing activities
Exercise of stock
options 38 8
-------- ---
Net cash from financing
activities 38 8
--- ---
Cash flows used in investing activities
Additions of
property and
equipment (271) (233)
Additions of
intangible
assets (635) (694)
-------- ----
Net cash used in investing
activities (906) (927)
---- ----
Decrease in cash and cash
equivalents (7,012) (4,500)
Cash and cash equivalents,
beginning of period 31,841 21,363
Cash and cash equivalents, end
of period $24,829 $16,863
------- -------
See accompanying notes to consolidated financial statements
Three months ended
November 30,
2015 2014
==== ====
Net
and
comprehensive
loss
for
the
period $(3,059) $(2,015)
Adjustments:
Depreciation and amortization 763 584
Finance income (48) (65)
Adjusted
EBITDA
loss $(2,344) $(1,496)
======= =======
SOURCE theScore, Inc.
