theScore Reports F2018 Q4 and Year-End Results

TORONTO, Oct. 17, 2018 /CNW/ - theScore, Inc. (TSX Venture: SCR) ("theScore") today announced the financial results for the three and twelve months ended August 31, 2018 in accordance with International Financial Reporting Standards ("IFRS").

Total revenue for the twelve months ending August 31, 2018 grew to $27.7 million, versus $26.3 million in F2017. Revenue for Q4 F2018 grew to $5.1 million versus $4.8 million in the same period the previous year.

EBITDA loss for the twelve months ending August 31, 2018 improved to $2.4 million compared to a loss of $5.9 million in F2017. EBITDA loss for Q4 F2018 was $2.4 million, compared to a loss of $1.9 million for the same period the previous year.  EBITDA loss in Q4 was due to a combination of increased facilities, administrative and other expenses, including expenses relating to U.S. sports betting business development activities, as well as advertising sales for the quarter which, despite year-over-year growth of 6%, were below expectations.

Monthly active users of theScore mobile app on iOS grew by 12.5% in Q4 F2018 compared to the same period the previous year, including growth of almost 17% in July, driven in part by theScore's coverage of the 2018 FIFA World Cup.

As a result, total average monthly active users of theScore mobile app grew by 5% to 3.7 million in Q4 F2018 versus 3.5 million for the same period in F2017, with iOS growth partially offset by lower monthly active users on Android. Total average monthly app sessions per user for theScore app on iOS and Android for Q4 F2018 were 70 compared to 73 for the same period last year.

Q4 F2018 highlights included:

• Total video views of theScore's esports content reached almost 33 million for Q4 F2018, year-over-year growth of 117%, with its YouTube channel surpassing 400,000 subscribers as theScore reinforced its position as the leading independent provider of competitive gaming coverage.
  
  
• theScore's content reached approximately 55 million users per month in Q4 F2018 across its social channels, serving to further amplify theScore brand with sports fans globally.
  
  
• theScore continued to pursue opportunities relating to the U.S. Supreme Court repeal of the Professional and Amateur Sports Protection Act (PASPA), which allowed individual states in the U.S. to explore legalized and regulated sports betting models. As part of these ongoing initiatives, the Company appointed senior interactive gaming and sports betting executive David Wang as a Senior Advisor.

theScore Founder and CEO John Levy said: "This was a very strong quarter for audience growth for theScore, with positive app user numbers supported by record-breaking reach across our social and emerging platforms. Our esports content also reached new heights, smashing through 400,000 subscribers on our YouTube channel and more than doubling total video views in one year - a testament to the incredible content being produced every day.

"On top of this, we continued to pursue opportunities relating to the legalization of sports betting in the United States. We see exciting near-term and long-term opportunities for theScore thanks to the unique advantages of our large and engaged audience and our expertise in delivering great mobile sports experiences."

Board of Directors Update
The Company announced that Kirstine Stewart is stepping down from theScore's Board of Directors with immediate effect after accepting a position with the World Economic Forum in Geneva, Switzerland. Ms. Stewart had been a member of theScore's Board since June 2016. Management and the Board of Directors thanks her for her contribution and wishes her every success in her new role.

theScore will host a conference call at 4:30pm ET on Wednesday, October 17 where management will review the Company's Q4 and Year End F2018 results, followed by a Q&A session:

Conference Call Dial-In
Toronto: ([phone]
Toll Free North America: ([phone]

The conference call will also be webcast live. Register now here.

Instant Replay
Toronto: ([phone]
Toll Free: North America ([phone]
Playback Passcode: 291628 #

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About theScore Inc.
theScore's mission is to create highly-engaging digital products and content that empower the sports fan's experience. Its flagship mobile app 'theScore' is one of the most popular multi-sport news and data apps in North America, serving millions of fans a month. The Company also creates innovative digital sports experiences through its web, social and esports platforms.

Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events or performances are forward-looking statements.  Any statement containing words such as "may", "would", "could", "will", "believes", "plans", "anticipates", "estimates", "expects" or "intends" and other similar statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Such statements reflect theScore's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including among other things, those which are discussed under the heading "Risk Factors" in the Company's Annual Information Form and Short-form Prospectus as filed with the TSX Venture Exchange and available on SEDAR at www.sedar.com and elsewhere in documents that theScore files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results could differ materially from the expectations expressed in these forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as required by applicable law or regulatory requirements.

theScore, Inc
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
		As at August 31,
		2018			2017
ASSETS
Current assets:
	Cash and cash equivalents	$	6,347		$	10,114
	Accounts receivable	5,839			5,578
	Prepaid expenses and deposits	1,078			1,238
		13,264			16,930
Non-current assets:
	Property and equipment	1,453			1,789
	Intangible assets	6,074			6,292
	Tax credits recoverable	1,616			1,616
		9,143			9,697
Total assets		$	22,407		$	26,627
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable and accrued liabilities	$	3,710		$	2,801
Non-current liabilities:
	Deferred lease obligation	415			490
Shareholders' equity		18,282			23,336
Commitments
Total liabilities and shareholders' equity		$	22,407		$	26,627

theScore, Inc
Consolidated  Statements of Comprehensive Loss
(in thousands of Canadian dollars, except per share amounts)
		Years ended August 31,
		2018			2017
Revenue		$	27,743		$	26,348
Operating expenses:
	Personnel	16,212			16,855
	Content	1,771			1,746
	Technology	2,906			2,478
	Facilities, administrative and other	6,200			6,050
	Marketing	2,490			3,585
	Depreciation of property and equipment	418			481
	Amortization of intangible assets	3,391			2,600
	Stock based compensation	546			789
		33,934			34,584
Operating loss		(6,191)			(8,236)
Finance income, net		277			(240)
Loss on Investment		-			(760)
Net and comprehensive loss		$	(5,914)		$	(9,236)
Loss per share - basic and diluted		$	(0.02)		$	(0.03)

theScore, Inc
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
			Years ended August 31,
			2018		2017
Cash flows used in operating activities
		Net and comprehensive loss	$	(5,914)	$	(9,236)
	Adjustments for:
		Depreciation and amortization	3,809		3,081
		Stock based compensation	546		789
		Loss on investment	-		760
			(1,559)		(4,606)
	Change in non-cash operating assets and liabilities:
		Accounts receivable	(261)		(252)
		Tax credits recoverable	-		3,061
		Prepaid expenses and deposits	160		(230)
		Accounts payable and accrued liabilities	908		(2,379)
		Deferred lease obligation	(74)		(5)
			733		195
Net cash used in operating activities			(826)		(4,411)
Cash flows from financing activities
	Exercise of stock options		314		54
Net cash from financing activities			314		54
Cash flows used in investing activities
	Additions to property and equipment		(82)		(129)
	Additions to intangible assets		(3,173)		(3,085)
	Tax credits recoverable		-		2,131
Net cash used in investing activities			(3,255)		(1,083)
Decrease in cash and cash equivalents			(3,767)		(5,440)
Cash and cash equivalents, beginning of period			10,114		15,554
Cash and cash equivalents, end of period			$	6,347	$	10,114

EBITDA
			Three months ended					Year ended
			August 31, 2018			August 31, 2017		August 31, 2018			August 31, 2017
Net and comprehensive loss for the period			$	(3,137)		$	(3,418)	$	(5,914)		$	(9,236)
Adjustments:
	Depreciation and amortization		857			935		3,809			3,081
	Finance expense (income), net		(71)			587		(277)			240
EBITDA (loss)			$	(2,351)		$	(1,896)	$	(2,382)		$	(5,915)

SOURCE theScore, Inc.

James Bigg, Sr. Manager, Communications, theScore, Inc., Tel: [phone] ext. 2366, Email: [email protected]

Related Links

http://www.thescore.com/