theScore hit by loss as Covid drives down wagers
theScore has announced the financial results for the three and 12 months ended August 31, 2020.
Total revenue for Q4 F2020 was $2.5 million compared to $6.4 million for the same period last year, while total revenue for the 12 months ended August 31, 2020 was $20.7 million compared to $31.1 million for the same period last year. This anticipated decline in revenue for the period reflects the direct impact of the disruption to the sports calendar caused by the COVID-19 pandemic.
Gaming handle was $14.8 million in Q4 F2020 and $41.5 million for the 12 months ended August 31, 2020. Gross gaming revenue2 was ($0.5) million in Q4 F2020 and $253,000 for the 12 months ended August 31, 2020. When taking into account promotional costs and fair value adjustments on unsettled bets, this resulted in negative net gaming revenue3 of $1.2 million and $1.4 million for the three and 12 months ended August 31, 2020 respectively.
EBITDA loss in Q4 F2020 was $8.3 million versus EBITDA loss of $4.1 million for the same period last year. EBITDA loss for the 12 months ended August 31, 2020 was $30.5 million versus EBITDA loss of $6.5 million in the same period last year.
The increase in EBITDA loss was primarily due to the COVID-19-related impact on revenue for the period and the result of additional expenses incurred in connection with the expansion of our gaming operations compared to the prior year.
Despite the continued disruption to the sports calendar caused by the COVID-19 pandemic during Q4 F2020, the Company achieved 3.0 million average monthly active users of theScore app on iOS and Android during the period, representing 83% of average monthly active users achieved in the same period the previous year.
“Fiscal 2020 began with the momentous launch of our gaming operations, with theScore Bet debuting in New Jersey,” said John Levy, Founder and CEO of theScore. “We were seeing great early momentum when, along with the rest of the industry, we had to adjust to the global disruption to sports brought on by the COVID-19 pandemic. Notwithstanding these challenges, we successfully navigated this period by keeping our team at full strength, preserving the vast majority of our userbase, and diligently preparing for the return of sports, culminating in the successful multi-state launch of theScore Bet into both Colorado and Indiana last month.
“With sports leagues now back in action, our media and gaming operations are thriving again in early Q1 F2021. Our unique formula of fusing media with gaming is resonating with fans, with total gaming handle on theScore Bet up more than 500% year-over-year in September with that momentum continuing into October too. We’re also excited by the early momentum in Colorado and Indiana, contributing to an extremely strong start to our new fiscal year across gaming and media.