TheScore reports $2m in fiscal Q2 losses despite record handle
Losses for three months to February 28 partly attributed to IPO costs as betting handle grows in New Jersey
TheScore Bet reported record betting handle of $65.1m (C$81.6m) in the three months to February 28, 2021, up 491% year on year.
Handle in New Jersey rose 200% on the previous year.
However, the Toronto-headquartered operator, which is live with online sports betting in New Jersey, Colorado, and Iowa, recorded net revenue losses of $1.9m (C$2.4m) on high promotional costs.
EBITDA losses for the period reached $10.3m ($12.9m), up 50% on the previous year, as the operator continued to scale and expand into new states.
Costs relating to theScore’s recent US IPO were also a contributing factor to the EBITDA losses during the quarter.
Engagement across the operator’s betting and media platforms continued to rise, with user sessions up 8% year on year in Q2 2021 to 488 million.
The media app received 3.9 million average monthly active users, while theScore’s esports content registered 186.5 million total video views during the quarter.
Media revenue increased 17% year on year to $6.4m (C$6.4m).
In March, the company sold 6.9 million shares via its Nasdaq listing, raising $186.3m.
CEO John Levy said: “The new capital provides additional resources to further execute on our strategies to integrate sports betting and content to drive deep user engagement and expand our market access.
“We will continue to enhance our media and betting ecosystem through investments in technology to further develop user personalization, unique betting offerings, and in-game prop bets, which are expected to be a significant driver of US sports betting growth,” he said.
“At the same time, we are working to expand our access into new US states while continuing our preparations for the anticipated legalization of single-game sports wagering in Canada.”