Date post: | 13-Apr-2017 |
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Forward looking statements
Certain statements made in this presentation may contain “forward-looking statements”. Such forward-looking statements are subject to risks, uncertainties and other factors, many of which are beyond the control of theScore, Inc. (“the Company”), which could cause actual results and developments to differ materially from future results and developments expressed or implied by such forward-looking statements. These risks and uncertainties are discussed in the Company’s Annual Information Form dated November 27, 2015 and available on SEDAR at www.sedar.com and elsewhere in documents that theScore files from time to time with securities regulatory authorities.
As a result, all such forward-looking statements are qualified by this cautionary statement and there can be no assurances that the actual results or developments anticipated by the Company and its management will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company.
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Who we are
John Levy: Founder and CEO
Benjie Levy: President and COO
Tom Hearne: CFO
A media industry entrepreneur, John founded theScore Television Network and grew it to become the largest independent sports TV network in Canada. By 2012 theScore was available in more than 6.6 million homes and, in October that year, John and his team executed the sale of Score Media’s television assets to Rogers Media and the spin-out of Score Media’s digital assets to Score Media’s shareholders into the mobile-first company theScore, Inc.
Benjie oversees the development and execution of theScore’s business strategy and has been instrumental in shaping its digital media offerings, including the creation and launch of theScore’s mobile apps. A graduate of the University of Toronto with a B.Com specializing in Finance, Benjie began his career as an investment banker in the Communications and Media group at BMO Nesbitt Burns in Toronto, prior to joining theScore in 2001.
Tom is responsible overseeing theScore’s financial performance. He joined theScore in 2008, having previously served as CFO for multiple Canadian hi-tech companies where he completed four IPO's, 10 financings with more $400 million raised, and eight M&A transactions.
What’s theScore?
The Ultimate, Personalized Mobile Sports Experience.
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• theScore ended Q1 2016 as the leading challenger to ESPN on mobile for the US and Canada (source: comScore)
• theScore competes with, and beats, apps by some of the biggest media brands in the world.
• theScore wins because of its focus on mobile as the first screen.
*Source: comScore Mobile Metrix, November 2015
What’s theScore?
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• theScore’s mobile app business remains at the core of its revenue growth
• New record in Q1 of 4.7 million monthly active users on theScore’s mobile apps, up 10%
• Average monthly user sessions hit 415 million, up 51%
• Sports fans using our apps an average of 80-90 times a month each
What’s theScore?
72011 2012 2013 2014 2015 2016
Q1 F2016
Fiscal Year: September 1 – August 31
What’s theScore?
In one quarter we’ve achieved more than half of F2015’s total revenue
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• Revenue growth powered by advertising – up 150%
• Programmatic and direct sales businesses delivering campaigns with major, globally recognized brands
What’s theScore?
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What’s theScore?
The core foundations of theScore…
Established brandLeading challenger to ESPN on mobile.
Powerful EngineeringBest-in-class mobile development team.
Mobile First ContentIndustry-leading approach to mobile content creation.
theScore is perfectly placed, with mobile the only US media seeing increased consumption…
The Opportunity
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The Opportunity
…and mobile ad spending as the only source of growth in the digital media landscape
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PRODUCT
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• theScore creates the very BEST mobile sports experience.
• Deeper personalization.
• More stats, presented via rich user-friendly graphics.
• Faster notifications, providing real-time updates.
• Original content created exclusively for the mobile screen.
theScore
theScore
Gaming is an integral part of theScore’s DNA, featuring real-time line movements and and personal, gaming-focused editorial content.
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theScore
• Re-launched fully-responsive mobile website in May 2014.
• Leverages existing significant inventory of mobile first sports content (300+ stories/day).
• Dedicated team of social media editors amplify content through social channels.
• From May 2014 to date, engagement on Facebook has increased from 150,000 in May 2014 to more than 2.5 million; theScore’s Facebook page now drives millions of visits a month to theScore.com.
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And we also made two recent additions to our roster...
Recent Additions
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The first dedicated eSports app by a major sports media company.
theScore eSports
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•More than 71 million people now watch eSports around the world, with about half of these in the US.
•Viewing figures of eSports events now surpass those of some ‘traditional’ major sporting events.
•By 2018, total eSports viewing hours are forecast to reach 6.6 billion worldwide.
*Sources: eMarketer, June 10 2014; Gamespot, November 19 2013.
theScore eSports
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•Round-the-clock eSports coverage from theScore’s content team.
•Taking the same approach to eSports as we do to ‘traditional’ sports coverage.
•Multi-game coverage, updated in real time.
•Seamlessly combines breaking news, scores and stats from the world of eSports.
theScore eSports
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Fantasy Sports• QuickDraft launched on iOS and web in December
• Designed to be ‘shark proofed’ and accessible to ALL sports fans
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Fantasy Sports• Free-to-play approach makes QuickDraft available in every
US state
• Potential for advertising and sponsorships, or even paid gameplay once legal and regulatory landscape settles
• Currently focused on refining gameplay and building community
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What’s theScore?
Established Brand + Powerful Engineering + Mobile First Content
• Real-time scores, news and stats.
• Recognized challenger app to ESPN.
• Used multiple times a day by sports fans.
• Cash prizes with zero entry fees.
• Available in every US state and Canadian province.
• Natural synergy with theScore’s user base.
• First eSports app by a major sports media company.
• More than 71M people watch eSports.**
• Fertile ground for brands looking to reach young, engaged fans.
**eMarketer, June 10 2014: Competition heats-up as eSports viewership explodes.
FINANCIALS
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• Significant year-over-year advertising revenue growth at 71%.• Growth driven by increased programmatic advertising sales in US market
and direct sales in Canada.
• Expense increases in personnel ($4.2M), mainly development and content
• Other expense increases in marketing ($0.9M), admin ($0.8M) technology ($0.8M)
Revenue
Operating Expenses
Adjusted EBITDA
$ 26,157
$ (10,668) $ (8,354)
$ 18,620
$ 7,820
F2015 F2014
$ 12,359
Fiscal Year: September 1 – August 31
58%
Financials – F2015
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• Significant Q1-over-Q1 revenue growth of 130%.• Advertising revenue growth of 150%.
• Growth driven by increased programmatic advertising sales in US market and direct sales in Canada.
• Expense increases in personnel ($2.1M), mainly development and content
• Other expense increases in marketing ($1.5M), admin ($0.6M) technology ($0.4M)
Revenue
Operating Expenses
Adjusted EBITDA
$ 10,110
$ (2,344) $ (1,496)
$ 5,126
$ 3,046
Q1 F2016 Q1 F2015
$ 7,003
Fiscal Year: September 1 – August 31
130%
Financials – Q1 F2016
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• Good balance sheet and working capital to sustain growth.
Cash
Current Assets
Working Capital
$ 36,952
$ 44,547 $ 32,417
$ 22,249
Q1 F2016 Q1 F2015
$ 24,829
Fiscal Year: September 1 – August 31
$ 16,863
Financials – Q1 F2016
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