Thescore Inc. First Quarter Fiscal Year 2021 Financial Results Conference Call Wednesday, January 13, 2021 – 5:30 PM ET
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theScore Inc. First Quarter Fiscal Year 2021 Financial Results Conference Call Wednesday, January 13, 2021 – 5:30 PM ET CORPORATE PARTICIPANTS what is discussed and that certain material factors or assumptions are applied in making these forward-looking Alvin Lobo statements. Chief Financial Officer Any forward-looking statements contained in this John Levy presentation represent the views of management and are Founder & Chief Executive Officer presented for the purpose of assisting theScore shareholders and analysts in understanding theScore’s Benjie Levy financial position, objectives and priorities, and anticipated President & Chief Operating Officer financial performance. Forward-looking statements may not be appropriate for other purposes. Additional information on items of note, theScore’s CONFERENCE CALL PARTICIPANTS reported results, and factors and assumptions related to forward-looking information are all available in our Matthew Lee financials and MD&A for Q1 fiscal 2021, both of which Canaccord Genuity were filed on SEDAR a few moments ago and are also available on our Investor Relations page at Suthan Sukumar www.scoremediaandgaming.com. Eight Capital Our CEO, John Levy, will now begin the presentation. David McFadgen Cormark Securities John Levy, Founder & Chief Executive Officer Thanks, Alvin. Good afternoon, everyone, and thank you PRESENTATION for joining us today as we review what has been a record setting start to our new fiscal year. Operator I’m pleased to report that theScore has turned in its best Ladies and gentlemen, thank you for standing by and ever quarter in terms of gaming handle and media welcome to theScore First Quarter Fiscal Year 2021 revenue. These record results demonstrate how fans are Financial Results Conference Call. At this time, all increasingly engaging with our mobile sports media and participants are in a listen-only mode. After the speakers’ betting platforms. We were primed and ready as sports remarks there will be a question-and-answer session. To resumed this quarter. As evidenced by the numbers, we’re ask a question during the session, you will need to press starting to unlock the potential of theScore and theScore star one on your telephone. Please be advised that today’s Bet, showcasing the value of a fully integrated media and conference is being recorded. If you require any further gaming business. assistance, please press star zero. As our gaming operations in the US expand, we are I would now like to hand the conference over to your simultaneously preparing for what is an enormous speaker today, Mr. Alvin Lobo, Chief Financial Officer. opportunity on the horizon in Canada with the anticipated Thank you. Please go ahead. creation of a fully legalized and regulated sports betting and iGaming market. theScore’s popularity in Canada is unmatched in the mobile sports space and we are eager Alvin Lobo, Chief Financial Officer to deliver theScore Bet to our fans in our home territory. The momentum in Canada, coupled with these Thanks, Rob. Hello and good afternoon. Thanks for joining outstanding results, underscores our strong market us on today’s call and webcast for theScore’s fiscal 2021 position in mobile sports media and sports betting and the Q1 results. This is Alan Lobo, theScore’s Chief Financial exciting opportunities ahead in these high growth Officer, and presenting today with me are Founder and industries. Chief Executive Officer, John Levy, and President and COO, Benjie Levy. We also further strengthened our balance sheet via the bought deal offering we closed in December, raising more At this time we would like to caution our listeners that this than $46 million for working capital and other general presentation contains forward-looking statements. There corporate purposes. The proceeds support the multi- are risks that actual results could differ materially from jurisdiction deployment and operation of theScore Bet and Page 1 theScore Inc. First Quarter Fiscal Year 2021 Financial Results Conference Call Wednesday, January 13, 2021 – 5:30 PM ET user acquisition and retention in jurisdictions where we are are high growth and continue to rapidly develop. As or will be operating. Also, today in our earnings release we previously mentioned, we are considering a listing on a US announced that we are considering an additional public stock exchange as the next step to achieve our business. listing on a US stock exchange. This strategy is one our In our view, it is timely for this consideration and we believe management team has been studying and we believe the potential benefits for theScore and our investor base access to the US capital markets would provide compelling may include a significantly larger pool of capital, greater benefits to theScore and our investor base. We’ll further average daily trading volume, exposure to a larger number cover that news in today’s call. First though, I’d like to of US retail and institutional investors, and a potential recap an impressive quarter for our gaming operations. increase in market valuation. When we launched our sportsbook, we applied our In today’s earnings release we also announced that we’ll expertise in technology and mobile sports to create a be holding a virtual annual and special meeting of completely differentiated betting experience, one that shareholders on February 10th. At that meeting, and in harnesses the power of media and gaming. It’s an conjunction with the potential listing, we’ll be asking approach that is working. Gaming handle was up 535% shareholders to approve a special resolution to authorize year over year in Q1, reaching $55.8 million for the period, theScore’s Board of Directors to elect a share as fans continued to gravitate to our unique combination consolidation. We’ve included details of the proposed of media and betting. This ongoing growth has been share consolidation in our management information achieved as we deepen our market leading media and circular, which is being sent to shareholders in advance of gaming integration, including the launch of Bet Section on the meeting and will be publicly available on our investor theScore app, which Benjie will share more on shortly. relations site. We are highly encouraged by the early foothold that we I’ll now turn things over to Benjie, who will provide a have established in this fast growing industry and we are summary of results in our media operation as well as a well equipped to continue our expansion across North closer look at some other product and content initiatives America. We believe the quarter with successful launches this quarter. Benjie? of theScore Bet in Colorado, I’m sorry, we began the quarter with the successful launches of theScore Bet in Colorado and Indiana and we’re preparing to debut in Iowa Benjie Levy, President & Chief Operating Officer in the coming weeks, subject of course to regulatory approval. Now, with marquee sporting events coming up, Thanks, John, and good afternoon, everyone. including the Super Bowl and our first NCAA tournament as an operator, we are extremely well positioned to In Q1 we achieved a new all time record for media continue on this growth trajectory. revenue, generating $10.6 million. Following the sports hiatus, brand partners have been eager to connect with Of course, one of the markets we hope to be operating in our large and engaged mobile app audience. In the quarter soon is on our home turf in Canada. We estimate a market we ran campaigns for notable brands, including the NBA, potential for online gaming here of between US$3.8 billion Fox Sports, and Trojan in the US and Audi, Volkswagen, and US$5.4 billion in annual gross gaming revenue based and DAZN in Canada. Further, our app continues to be on historical data extrapolated from the legal online relied upon source of sports news and content. We gaming markets in the US and globally. Ontario alone is a recorded an impressive 3.9 million monthly active users huge market with population larger than all but four US this quarter, each opening theScore an average of 116 states. It is now clear that there is cross-party support and times a month. These results were achieved in the strong momentum to amend Canada’s outdated federal absence of the traditional sports calendar, with no regular laws and enable legal sports betting market to flourish and season NBA or NHL action, and are strong indication of we have been actively participating in those conversations our brand loyalty with sports fans across North America. at both the federal and provincial levels. theScore is Canada’s leading mobile sports brand with millions of loyal On to social media, where the power of our channels app users across this country and we’re in a great position continues to attract both huge audiences as well as brand to capitalize on the expansion of online gaming. We’re partners, we reached an audience of approximately 105 hard at work preparing for this sizeable opportunity and million users in Q1 across Twitter, Facebook, Instagram, look forward to seeing legislation progress in 2021. and TikTok with Head & Shoulders and Subway activating on our platform. Much like the user behavior we’re seeing As the only truly integrated mobile media and gaming on our media app, fans are increasingly engaging with our company in North America, we are uniquely positioned for social content, which serves not just as an opportunity to the tremendous opportunity ahead in gaming. Our amplify theScore brand, but to drive advertising dollars as industry, sports betting, mobile sports media, and esports well. Page 2 theScore Inc. First Quarter Fiscal Year 2021 Financial Results Conference Call Wednesday, January 13, 2021 – 5:30 PM ET Thanks, Benjie. As John noted earlier in Q1, we released Bet Section on our media app, our most integrated and personalized suite Before I provide a financial recap, I need to take a moment of betting features ever.