When March ends, there is always a hiatus in gambling. The February NFL Super Bowl is over, the March NCAA craze is over, and there are no other major competitions on the schedule. The proliferation of PGA, NBA and other sports leagues helps hold the market, but doesn't deliver the results sports game operators are enjoying at the start of the year. Canadian gambling operator theScore released its latest financial health report yesterday, and the results are well below the firm's and analysts' expectations.
Swing and Miss For theScore
Yesterday theScore, officially Score Media and Gaming, released a fiscal quarter earnings report that ran from March 1 to May 31. It reported a handle of $ 74 million, down from 74.6 million that was recorded in the previous period. This period, however, included the NFL and the NCAA, which partly explains the better results. Beyond that handle, theScore was able to record revenue of $ 6.31 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of -$ 17.1 million.
The results were not only worse than the company expected, but also lower than analysts' forecasts. Previously, the company was expected to report approximately 931 million in revenue and -888 million in adjusted EBITDA. The decline also had a significant impact on the company's stock, which saw a significant decline. Trading on the NASDAQ under the SCR ticker, the result hit a six-month high of $26.88 on March 31 before the slide was recorded, which continued. It came to the $12. in May, before the amendments were introduced; however, the earnings report led to a new decline. The company was listed on $17.17 on Monday afternoon, but ended Tuesday at $17.74.
Good news on the horizon
theScore previously noted that in the first fiscal quarter of 2021, the gaming result was $ 55.8 million. . This was a year-on-year increase of the 535% and showed that the company is capable of great things. The latest results are likely to be just a tiny leap in the bigger picture, thanks to Canada's newly enlarged sports gambling market and increased focus on the US market.
With the advent of single-event sports betting in Canada, theScore will offer players many more options. In the United States, which is constantly finding new states willing to take advantage of legalized sports gambling offers, the company will have many opportunities to expand. It is now poised to expand its business with a market access agreement with Caesars giving it access to Illinois, and can also be found in Colorado, Indiana, Iowa, and New Jersey. It currently only has approximately 1% market share, but expects to double its US presence in the next 12 months.
theScore particularly believes that the Canadian market will offer a lot of stocks, especially in Ontario. John Levy, CEO of the company, publishing the earnings report, said: “With a large and enthusiastic Canadian user base, strong brand identity and experience operating a powerful US mobile betting platform, we are well positioned to succeed in Ontario. and throughout the country. "