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Score Media & Gaming (SCR)

Participants
Alvin Lobo Chief Financial Officer
John Levy Chairman and CEO
Benjie Levy President and COO
Matthew Lee Canaccord Genuity
Chad Beynon Macquarie
Ben Chaiken Credit Suisse
David McFadgen Cormark Securities
Call transcript
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Operator

Good afternoon. And welcome to theScore Fiscal Year 2021 Q3 Financial Results Conference Call and Webcast. At this time, all lines are in a listen-only mode. After the speakers’ presentation we will open up the call for questions. [Operator Instructions] Please note that the audience on today’s webcast will have the ability to increase the size of their presentation screen by navigating to the maximize controls found in the top right of the slides window. recorded Time. July being X:XX XXXX, is Daylight Eastern call today, XX, Tuesday, at This now to would Alvin I like Lobo, your over Chief host, to Financial Officer. turn the call Mr. begin. may you Lobo,

Alvin Lobo

are to Thanks Thank and me for and you, certain for forward-looking forward-looking XXXX statements Lobo, There from is fiscal that material materially time, factors theScore’s differ call results. contained in or statements. theScore’s Any this and applied results that CEO, and Officer; theScore’s these Guyana. good like risks President assumptions Chief webcast could making joining today and on what Financial is we discussed today’s Hello presentation us and and management this views are call actual At assisting are This objectives statements. Alvin QX shareholders are afternoon. and and Chairman the our this financial COO, for financial the in anticipated that of Levy. performance. and on theScore presented position, Levy; purpose Benjie forward-looking listeners understanding theScore’s of analysts priorities, presentation represent the caution would John contains and in joining

other Forward-looking appropriate statements for purposes. may be not

Investor moments and Additional and and fiscal information, note, information of reported and page ago available of which our ir.scoremediaandgaming.com. Relations theScore’s both our forward-looking at SEDAR XXXX, on related few assumptions are MD&A on to are results a in items available QX all factors financials for filed on were also

presentation. Our Levy, CEO, begin John now will the

John Levy

third our fiscal review for us good Thanks, today to you continuing as afternoon we strong setting was record Alvin, what joining everyone. thank And year. a and quarter,

here saw in of further media our business, betting traction period forward recent was IPO, a opening by the We significant of in as sports and XXXX million. proceeds events U.S. The third betting, our Canada, raised that with fiscal third of completing quarter began an later quarter our the step legalization operation, highlights sports the milestone Ontario monumental clears for for year. gross path we course, incredibly of market our which US$XXX.X of single productive the this company

are our rapidly of our We expanding footprint betting build the integrated and market technology, platform, ongoing sports, our and investments access the further team. in to towards deploying media scale out capital

make support the theScore across development. big where strides of technology North We continue to months. licensing launch coming additional to continue we In America, expansion states, ongoing with in our progress several our to the Bet we hope across in make

is still number. XX due X% gain of a was million, but at QX when a pre-COVID thereby Management proprietary Engine, been a pandemic, our applicable calendar was as will us GLI major moves with provider Player revenue We developed vertical set throughout mark Account XXX% sports same to the and month, betting our transition the attention media touching which to internally sportsbook to on digital of gaming Next a System which to milestone the media sports up business, moment, as Promotion our in This business America. over North [ph] is gaming a strategy like of labs. period in $X.X a media exceeding theScore with prior to of up of our the do. operation, spend media and for foundational the bit establish we plan I’d we revenue integration sharply sports to have disrupted heart compared state what to the leading of our the deployment record year integrated COVID-XX closer will by and media I full which my approved time was turn new

any the fiscal for activate media fiscal to-date and XXXX. all to a high is platform leading our audience months the This demonstrating continued in North in willingness this time million range of $XX.X year an of brands via history, business now has ongoing health the Our our of our first generated revenue nine campaigns. audience, our of American reach of substantial of highly successful

achieved user base sessions, the XX% our of strong history XXX record total return the roughly pre-COVID quarterly engagement marking levels. This million quarterly sessions user, from the for X.X active across also XXX We our to user a up per highest the the average XXXX. quarter million, users, company’s third the in of

reach channels esports XXX across social And users, monthly cross-platform our million video XXX Our quarterly an million achieved sports record. we an another impressive of content across views. platforms, average registered

confident of proud I Bet extremely positions engagement sports of the iGaming across theScore as am rollout for in new for we well Ontario expansive and results audience and states and is particularly our launch long-term the online Canada. team Our that prepare U.S. these in and betting us and powerful growth,

much we a due business, Bet This gaming cancellation the our on handle of during its the anticipated generated after Tournament the of last to return quarter. Turning NCAA includes $XX pandemic. the third year to million theScore

team month Our of full generating acquisition into $XX.X record. betting handle drive to interest, and a tournament million user leading events took March the new single

fully it we as entire strategic towards priority fully technology. has ours transitioning been our Now to earlier, and developed are our tech betting From controlled our internally control own platform. progressing the of a noted stack and I onto outset, core

working that at have rollout services to successfully the two across end us enabled tight in whose made multiple and our works past We that while platform theScore Bet years, strides to with great alignment states. technology have partners over

step tech operations. gaming Next we plan Engine, our will and a our our to streamline further Promo and fully month, however, Proprietary deploy migration major represents PAM which in

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Bill legalizing over to frameworks. before and sports a legislation Benjie, way Canada. milestone update product, to with paves development and to I in brief on initiatives, home our the XXth, for in on significant event sports a Canada Canada realized now turn Canada Assent wagering provinces June and of the passage I This Finally, XXnd the betting iGaming own subsequent will review June and sports Royal forthcoming regulated the its want single their of implement C-XXX betting sales our -- on find opportunity give who you in this around province Ontario.

to Well, Ontario As we its private we home and believe theScore iGaming had the in of it to-date, couldn’t and to unmatched. prospect hoped the on where which finally the long country we our implement is framework XXXX, happening by stands more legalization enter excited to for, track market. serving affinity like our by is betting expected is the sports new of operators allow end betting be of is fans brand sports

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to over Ontario Benjie expect opens. to be turn for now We to comments. will his go ready when I it

Benjie Levy

good afternoon, Thanks, John, and everyone.

by wagering of this another sports March in March mentioned, was successful quarter in our As highly push execution and around record Madness. event a highlighted John handle marketing marquee the

week Bet theScore week to the marketing first integrated Our tournament. during betting campaign its ever highest the of generate led

the funds. efficiently our number that proprietary enhancements and our focused During the more of a addition customers team to including to product payment access engineering of and allow wallet, key options withdraw their quarter, was on

improved expanded our in the additional John technology including upcoming Patrick addition solutions deployment Earlier our in-house quarter, our the operations, trading. for now and risk last sportsbook and of and launch and we have payment in Canada. we for withdrawals, of the Over integrating offerings discussed our are U.S. and in process expected the Jay preparation oversee automated in to

edge even As before users have our theScore own unlock and additional best-in-class we capabilities, user since previously, theScore Engine These and further launch. to to significant, has Promo efficiently our and The serve underpinned offering is who cut their by towards differentiate both strategic product will have emphasized more plan media media the and product Bets been our building strategy sports mobile from month Bet and growth. betting our stack to of our technology and across capable objective and set. platform full integrated is that working This drive leading our creatively been long-term automation, and System cross-platform Proprietary PAM outset built expands which systems rapidly full and deployment it serve next growing as teeth team, our personalization, cutting integration ability near- hugely engineering platform. custom incredibly we will

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forward looking are very the to him team. We to welcoming

and business media numbers. produce engagement revenue record to continues Our

our top Heuer. and and secured eager tier brand media engaged mobile returning than brand that we are Microsoft quarter returning such partners with this clearly Notably, more to as is audience with deals ever. connect New Tag Nissan,

of We Burger EQ also signed Bank. partners including new King, and Callaway a number

our visibility partners. for were This offering custom debuted excited with ad innovative animated launch new advertiser. high PepsiCo built our market product as brand we offering to addition, In our that to first another a expand mobile point touch May provides in with tech page

Madness, the the driven March media weeks drove the daily, have with engagement three million strong the an monthly throughout by our content generating significant bears profile users high We that gaming mentioning of across March incredibly Activity it also pageviews XXX,XXX app. Tournament, this Madness was XXX tournament. viewing for highlighted over of NCAA event user but handle average

Moving results platforms video all in We registered XXX on achieve. quarter. we to continue to esports impressive across and esports the million the views

each level brands recently quarter solidified this Our theScore such at GEICO, commitment. as generate as has ability six-month to media campaign global leading a for enticing esports destination, video views a who resigned

quarter Our added media more strong social added on in our extended cross-platform we quarterly media grew Instagram significantly followers metrics XXX,XXX followers. ever third performance we on delivering new highest where where with theScore reach. new TikTok, XXX,XXX the than and We another to

we Audi Morgan and signed also for Captain social quarter and digital. with across who secured This contentseries deals on

building We actively our capabilities. are now our monetizing our are content broaden team consistently digital social to presence and media out

about social moving have detail We our to turn now will growth and authentic across Alvin will driver who an talk key will expertise to be media over area a I in our hard this influential and worked things believe in cultivate more financials. forward. voice

Alvin Lobo

for increase revenue primarily quarter million $X.X $X.X negative third with into costs million, gaming compared promotional the our to million. by of year-over-year a Gaming the $X.X media was to When the our in million record compared gaming operations period value Thanks, connection increase and QX and million EBITDA additional Media fair last Total quarter and taking quarter. for was initial gaming and related revenue completed closed quarter. XXX% by EBITDA was $X.X fiscal $X.X the revenue was expansion resulted a loss wider was driven this Benjie. The negative partially representing the to in third year, revenue expenses with million. U.S. $XX.X the third $XX,XXX the public XXXX. adjustments for offset third handle on costs incurred offering $X.X and loss EBITDA XXXX ongoing gaming professional recently of an gross same net a revenue revenue X% fiscal million same loss period in in negative net fees in versus million last same which $XX unsettled bets, year. was in of account service

formal of now million from with our concludes take of the position, part we hand. terms closed will the In This $XXX.X of our liquidity cash third Guyana, analysts. questions we on quarter presentation.

Operator

Matthew is Genuity. question Canaccord first Lee of Your from

now is open. Your line

Matthew Lee

Good evening, gents.

So G&A, a one-time question can of how in here, will me you housekeeping maybe terms nature? just in was tell of with I that start much the

Alvin Lobo

Sure.

John Levy

will… I

Alvin Lobo

John. Sorry, Go ahead.

John Levy

over, So I you will turn provide Alvin that? it on can

Alvin Lobo

Yeah.

platform as a just scale taking on from which given to more betting say we balance company of in costs, would of is growth the nature including in-house. more you continuing majority G&A do to it product of the overall and to terms some as a there was are business, I and in of is five also U.S.-related rest, So a in about continue and well in perspective of the public as tech increase one-time of headcount, of look, that the what seeing sports engineering some vast we are reflects ongoing the what related

non-recurring say, in And costs, public would that growth business. just so a you both sense as of like the the in elevation I as company the gives spend overall out sort good of back you well when

Matthew Lee

should we point to going then expecting forward? G&A kind So quarter of million be gaming per $X $X million

Alvin Lobo

look baseline. but other look be you -- of of necessarily I to will know, things at to a mindful to we as fair kind I but as too, scale don’t we as that Matt, Again, invest guide, Yeah. it’s like think there and continue be

Matthew Lee

then And reach handle you a can at Great. more you believe just positive? bigger that that make consistently picture, what can discuss of GGR level maybe to

John Levy

peril. our U.S. in a we now. doubled you maybe specifically about four talk since perhaps particularly of next to the more we without anticipate the a in without it’s early talking have states that in some about And and thoughts that don’t Benjie talk terms even we hope and days in than what specifically little that’s Benjie maybe that little scale of why about color I know of states each But difficult talk the on about XX to are We saying are sort we guiding that. give within around months are

Benjie Levy

we not converts. put are Yeah. going a think No think, on Matt, number ultimately I we handle to listen, where that specific

do we with too the us our there’s share that and and our slow market future And are we the and I starting see that This and us are consistent ultimately, opportunities in are still like And is to is on we start we we as to building tech with normalize of been at are distant this has to there steady. future forward opportunity that do in jurisdictions ahead get some which our own to think not are about results services. in of the the think the not that to scale Ontario, buying we and it there stack in scale on view from perspective. see way on looking these and approach, -- end the a on market own get marketing to day scale that buying all basis. a our no, the day-to-day the some week-to-week until our and of But of susceptible we overall swings. but at it’s

Matthew Lee

for That’s you handle is… maybe in just QX on the the but the of right. similar know to of color overall you hand the like expected market next you couple provide the in And overall you calendar? in and All sports Are don’t I as given QX starting quarters perfect. could then saw some on guide, which see terms industry

Benjie Levy

NHL MLB out is we QX after calendar we summer, calendar, and you line a it’s -- Yeah. over and our our I fiscal which it Olympics quarter. up of softer Fiscal the -- is just NBA yes, getting the after fiscal then all where of largely the you the wrap are in Q when fiscal strongest fall quarter. our have seasonally and for sports Listen, mean follows is against QX I look mean, us our sports of, QX up, QX came into but fiscal kind the QX, our right?

natural flow ebb sports lines I calendar. to and handle So along of the think it’s expect to

Matthew Lee

line. Perfect. Thanks. pass I will the

John Levy

Yeah.

Operator

Instructions] from is Beynon Your Chad [Operator next Macquarie. of question

now is line open. Your

Chad Beynon

you about of of the reasons are that grow? as thinking to talked as goal, can’t tech over a peers about can’t what be you my you time talked -- change executing the about are handle but talk long-term it revenues it margins are this know taking about why how wanted the the bringing as Does of and for I business if question. higher talking Hi. the as I to about? guys than it you initiatives and some doing primary you Thanks Thanks. high actually your about the And if not ask or for start have in-house. more timeline. this some the and about

John Levy

our just of the integrated fruits So, attributes right we when for launched. that I Bet will authorized saying already our been launched tech first over and omni us see the and fully to and be time Alvin the are let from And all, to of within strategy. of will able that, We what and and as also as aspect wallet are that it the we of part to are every core offering we asking we the you from are I start And mark the in these management -- thanks, able in to to what what once and that has offering states was put which as our go provide the how and think want out I increasing we a uniform from know, us rollout? to bit said and in show what going little go-forward critical core, to right? control allowing at But is question present in be were are margins with by basically right are. the theScore results of of context at tech thriving But have over stack GEICO our is a and going financial context about do all having you of it are PAM doing in the really the from core that theScore attractive touches improves labor. have of being offering deploy first starting impact vehicles. Chad, Building we this that to promotional Alvin a talk to today Benjie the and terms licensed margins ready we and announced were the type of to, we of penetrations that access market the position don’t the financial we offerings more our doing launch context to it’s for to the tech the we four stack I Ontario in talk going of of our that to own a stack where maybe

Alvin Lobo

answer acquisition, short Sure. as in industry it a overall we components margins like one I just the in but to the stacks think that And Chad shares at of terms helps in rapt having this us of that the we the tech philosophy of to integrated frequency to this result whole think of the the ecosystem. to consumer’s high not the benefit the But But experience end and of And with partners. is, participates tech looks point, a nice along retention is really user doing not from the an the pay that sort the your do do attain is of engagement we having which are for perspective in what just of think important the just margins, side it embedding it. approach. but of really ownership media

why but nice it. So a our like It’s doing the tech. effect really short just own yes, answer not -- are added owning what that’s of we is,

Chad Beynon

can your launching Thanks, once initiatives Okay. the That as in is then then John. are Thanks, And a iGaming of in customers markets makes you will that where product of Alvin. the markets you regarding doubling that you you lay if the products? sense. offering legalize Ontario, help OSB, expected And markets? such out those the or Thanks. in iGaming to achieve terms timeline iGaming we currently on legal expect be should to

Alvin Lobo

have take in I fall access, market we to well short subject would in existing the have and based all the as so and current betting Chad. running New Jersey timelines on have approvals. can has the put Ontario in December to that up as to and is, iGaming one, Yeah, that online available iGaming iGaming be out at the sports where plan where market iGaming plan open the answer both is Ontario course regulatory is our that of

Chad Beynon

Best much of luck. Great. Thank very you guys.

John Levy

Thanks Chad.

Operator

next question Credit of from Your Chaiken Suisse. is Ben

Your line is now open.

Ben Chaiken

How’s have You Hey. it going? got…

John Levy

Hi.

Ben Chaiken

process us Ontario of How required the customers, the strategy iGaming there presence those think material flux acquisition, is You existing OSB promo for do through education Just is already. about be arm In think level that existing this you and still currently? help of presence have -- your in few can an it a media appreciating like, the may expense? months that’s about material customer you high least some rollout. at first in and

John Levy

Okay.

Ben, I will… So,

Benjie Levy

I will…

John Levy

do lead or Benjie, go ahead. off a Go ahead. want you

Benjie Levy

a Listen, Ben, for about loves because talking and just I -- have is market think, we our Sure. platform and have tremendous who very a as exciting very, user been not is it’s base we a here. us John Ontario

a We as the and in business history having better -- a a have years. legacy for part been theScore brand brand market first as television a with XX of

here predominantly is that because and the more in audience market target to presence of the allows it’s marketing our creative have attack way do in the the that we are we a able because conversion also what do based from been perspective. of lot us, marketing bit been so, U.S. in knows different to -- And Up have the digital and a and where approach a presence execution that us been market to brand than has we brand done selected a states.

ultimately not a generate to spend us is. we Bet because Board, to that marketing more you an brand about theScore because So ROI us more more are can theScore the that be any effectively, perspective market. educating here so media brand across theScore than in or much know the active sports is other who people on allows what from expect People

Ben Chaiken

all Thank Got you. That’s me. from I you. it. appreciate

Operator

is [ph] of question next Your Karve Eight from Capital. Sudhir

line Your now open. is

Unidentified Analyst

Good like state you know timeframe? go just about rollouts, HX additional to Illinois was maybe talk or evening, something live everybody. of Can I with in Caesars Thanks for taking skill for question. in partnership that around the that was slated is kind line expected my that

John Levy

Yeah.

Sudhir, and thanks, So glad to have you call. on the

pursuing partnership timeline currently when Illinois the licensing in are to want front an We in down wouldn’t in IGB, with that’s be. of Caesars to put on exact going

We working process are now though. through that

Unidentified Analyst

side, of talk couple market working? access of Okay. know guys kind comes regulatory market the guys the Can on of agreements some on several the or you are months. looking last market initiatives with you of broader Great. some access at over more legalizing been about some legalization the states the movement additional the of it when maybe Then there’s kind just I

John Levy

applied -- on organizing into Virginia get confidential I an have are can’t front. that get organizing a licensing order. jurisdiction that discussions Tennessee. for I that license it’s that’s been in Listen open Maryland publicly to we details open also their mean, in ongoing market and for is short reported on

the over anticipate launch we a more next course We have publicly of that XX from our than that footprint we anticipate state doubling. months the said perspective

well-positioned execute we of that. we into got what of line are have on And we sight on based to kind believe so

Unidentified Analyst

helpful. That’s Okay.

Thank me you much. all that’s very guys. for So

Operator

Your next David question of Securities. from is McFadgen Cormark

now is open. line Your

David McFadgen

Oh! A Hi. of Thank couple Yeah. questions. you.

factors in to dip was just it looking of just QX following am I sequentially? QX $XX.X So the other handle, schedule a so there function the and $XX Is sports was at caused this or million some that million.

John Levy

No.

think it is of that David sequential previous sports my comment I of with consistent calendar. kind just kind

David McFadgen

in And just factors is $X is there or then, play that on all related some other to one-time QX Alvin, costs of that the primarily IPO U.S. there? nature for million Okay.

Alvin Lobo

related U.S. Yeah. the Primarily all IPO. to

correct. are You

David McFadgen

Okay.

loss and instead $XX.X $XX million that we back be So EBITDA of if correct? out would we took that million, the

Alvin Lobo

Yeah.

David McFadgen

Yeah.

and million, the million. X.X am Okay. when then X.X take actually can active of And you look getting high million it’s you up level bounced can it’s back over I to do still at at sit quarter. cover with going your lot typically $X X just this you I just to million in we are think where is monthly of this be say, sort that around bet think to to user from up do going to million and or growth on of sports? It’s you is between, base wondering just where a here users this X.X people

Alvin Lobo

Right.

it to take it translate you sports in do kind on the second I the from are correct users do part app user we range of to very things around part think lot what can of about deal. I of steadily think We I the And about that will a the yes. time. users that answer believe X.X, think that bounces engagement. second to on grow think you and continue part convert capability base. know we perspective think user first we about we can to our is, media a bet and and respect into with first should we have A and low-Xs that we X.X, do lot of the to that over the strongly grow we growth product the

David McFadgen

Okay.

Thank you. it right. Okay. me. All for That’s

John Levy

David. Thanks,

Operator

call. conference participating. you today’s concludes Thank for This

may You now disconnect.