Score Media & Gaming (SCR) 14 Jul 212021 Q3 Earnings call transcript

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,

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

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

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,

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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

good afternoon, Thanks, John, and everyone.

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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.

Matthew is Genuity. question Canaccord first Lee of Your from

now is open. Your line

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

Sure.

will… I

John. Sorry, Go ahead.

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

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

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

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

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

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

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

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

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

line. Perfect. Thanks. pass I will the

Yeah.

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

now is line open. Your

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

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

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,

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

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

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

Thanks Chad.

next question Credit of from Your Chaiken Suisse. is Ben

Your line is now open.

How’s have You Hey. it going? got…

Hi.

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

Okay.

Ben, I will… So,

I will…

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

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

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

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

line Your now open. is

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

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

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

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

helpful. That’s Okay.

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

Your next David question of Securities. from is McFadgen Cormark

now is open. line Your

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.

No.

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

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.

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

correct. are You

Okay.

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

Yeah.

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

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

Okay.

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

David. Thanks,

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

may You now disconnect.