TheScore reported a slight loss in gross gaming revenue for sports betting in the third quarter of Fiscal Year 2021, but it also expressed optimism for its long-term outlook as its expansion continues in both the United States and Canada.
Overall, the Canadian company finished with total revenue of $6.4 million for the quarter ending May 31, helped by a Q3-record $8.9 million in revenue generated by its media component. While the gross gaming revenue loss was $40,000 on $73 million in sports wagering handle across four states, including Indiana, the negative net gaming revenue totaled $2.5 million when factoring promotional costs and fair value adjustments on unsettled wagers.
The company also completed its initial United States IPO offering, raising $186.3 million for its NASDAQ listing. Though theScore’s EBITDA loss for the quarter was $21.1 million versus $8.7 million for the same period last year, most of the losses can be attributed to the technological expansion as well as approximately $5 million in one-time fees devoted to the IPO. The company finished with $229.1 million cash on hand.
“Following our successful third quarter U.S. initial public offering and public listing, our entire team remains focused on further establishing theScore as a leading, integrated provider of digital sports media and sports betting throughout the U.S. and Canada,” theScore Chairman and CEO John Levy said in a statement. “We believe our unique collection of interactive media and leading-edge technology along with our massively engaged user base positions theScore for long-term growth and shareholder value creation.”
Almost half of theScore’s quarterly handle — a single-month record $30.8 million — was generated in March during the NCAA basketball tournament. For the entire quarter, Indiana accounted for more than $9.1 million of the sportsbook’s U.S. handle, while generating $517,510 in revenue. TheScore conducts mobile wagering in the Hoosier State via Ameristar Casino and in June posted its best in-state monthly handle since launch, totaling $3.8 million to start the final quarter of FY2021.
TheScore has generated nearly $25 million in overall handle and close to $1.2 million in revenue in Indiana since launching last September.
Building up internally ahead of expansion
Much of the focus during the conference call was related to theScore’s technological developments, which include the continuation of moving its technical stack for sports betting completely in-house. It will also unveil its proprietary Player Account Management (PAM) and promotional engine system next month, which creates a more efficient experience while “unlocking user personalization, integration, and automation.”
Levy also announced that Patrick Jay will be joining the company to oversee sportsbook operations in September. A veteran of the sports betting industry, Jay was sportsbook director at Ladbrokes Coral in London from 2004-09 and the trading director of the Hong Kong Jockey Club from 2010-15. He has been serving as chief interactive officer at Belgian-based GAMING1 since April 2020.
“Patrick will play a major role working cross-functionally on all aspects of our sportsbook operations and theScore Bet, including the roll out of our in-house risk and trading,” said Levy. “We are looking forward to Patrick joining the team in September 2021.”
TheScore is expected to be a major sports betting player in Canada, which recently approved single-game sports wagering. The province of Ontario, home to Toronto, has a population of 14.8 million, which is roughly equal to the 15.6 million combined in Indiana, Iowa, and Colorado — all states where theScore currently conducts mobile wagering.
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