TheScore reports $11.3m in operating losses
Senior management takes 25% pay cut for three months to mitigate coronavirus losses
TheScore recorded USD$11.3m in operating losses in the six months to February 29, 2020 on increased marketing, technology and operational costs.
Sales and marketing expenditure rose 99% year-on-year, while tech costs were up 142%.
GGR for the gaming arm of the business was $486,127 for the six-month period, with a net revenue of $156,796 after considering adjustments on unsettled bets.
An EBITDA loss of $9.5m during the six months was attributed to increased expansion costs.
TheScore Bet app recorded $9.8m in handle for the three months to February 29, an increase of 58% on the previous quarter.
During the period, additional sports markets were added to the app, as well as product enhancements to speed up and streamline the UX/UI.
Chief executive John Levy said both handle and revenue grew on the back of continued enhancements to user experience and a deeper integration between the firm’s media and gaming platforms.
On expansion, Levy said the firm expects to go live in Indiana and Colorado later this year as it continues to explore other market access opportunities
“It was also a record Q2 for user sessions on our sports app, with monthly active users up year-over-year for the second quarter running,” said Levy.
“Furthermore, we also saw more powerful reach on our social and esports channels, which continue to drive strong engagement despite the mass disruption to traditional sports caused by the coronavirus pandemic,” Levy added.
The company expects a decline in revenue during this quarter when considering the impact of the global pandemic on betting activity.
To mitigate this loss of revenue, theScore’s senior management team has agreed a 25% salary cut from May 1 to August 31 in exchange for company stock.
TheScore has also appointed chairman of award-winning marketing agency MKTG Canada Brian Cooper to its board.