theScore Has A 25% Drop In Wagers During Third Quarter

• The outbreak of COVID-19 has played a pivotal role in the losses reported for Q3 of theScore in 2020.
• They recorded an EBITDA loss of $22.2 million for the first three quarters of 2020 which is a tremendous surge compared to their 2019 EBITDA of $2.3 million in that same timeframe.

TORONTO – The third quarter for theScore closed out on May 31 and reports are finally in, showing a 25% decline in average user activity.

The company is attributing this dip as well and their much lower than normal revenue numbers to the Coronavirus pandemic.

With the loss of almost all major sporting events in the nation since March, there hasn’t been a solid interest among gamblers to place wagers on other obscure events.

Details Of The Q3 Report For theScore

While they were in limbo due to the state of the sports world, which is the nucleus of their own, the company continued efforts to expand upon their products and development that will help them in reaching their future goals to have their mobile application used in more states across the country.

They have already received temporary licenses to operate in both Indiana and Colorado. By the beginning of Fall, theScore could see the launch of their platform in these states, helping to further their growth.

Outside of their business in Indiana and Colorado, they managed to become an Authorized Gaming Operator of Major League Baseball. The partnership with the MLB covering multiple years, allows the application to have up to date access to all official baseball data and league marks. They may also use logos for the platform.

This extra time given to them while sports was on hiatus allowed theScore to spruce up their mobile sportsbook application to make for a better experience for all members, new and old. They’ve added a number of new betting options, more modernized payment methods, and improved their promotional setup.

Although their member activity decreased to about 75% of their average or 2.9 million bettors each month for the quarter, their esports viewing option spiked to 145 million views, resulting in a 113% increase from 2019’s third quarter marks.

With this number, they made a new record for any quarter in the company’s history. Over 9.7 million hours of viewing occurred on their YouTube channel, displaying a 76% increase.

Other social media platforms also exceeded average statistics for theScore. Their TikTok account blew up by 80% and now has over 1.7 million followers while their other accounts averaged 104 million clicks per 2020’s Q3 report.

As for the recorded revenue, it dropped more than user engagement. They made $2.4 million in Q3 and in 2019’s Q3 they made $8.5 million. Again, they believe this is a direct effect of the outbreak of COVID-19 and the disruption it’s caused the world and businesses such as theirs.

The Outlook For Q4 And theScore

Gaming handle for all three quarters has been $26.7 million with $3.7 million of that coming from Q3. Total revenue for gaming was $81,000 in the third quarter and $766,00 for the year thus far.

After factoring in other costs, the company was in the red by $22,700 for Q3 and $244,00 for the year.

They have also reported an earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $22.2 million tallied in the first three quarters which is about 10 times their EBITDA for 2019 and it’s first three quarters that recorded a loss of $2.3 million at the time.

To offset these monumental losses and keep theScore above water, the company put in place various cuts, such as all senior management employees taking a 25% pay cut from May through August. They were given Restricted Stock Units (RSUs) in return. theScore also cut spending, allowing themselves a cash budget of $3.9 million for Q3. This helped them to end the quarter with $17.6 million in discretionary funds.

Now that sports is coming back into play and they will be adding two more states to the list of marketplaces that could provide them higher profit margins, theScore is prepared to excel in the fourth quarter.

“Live sports has the power to serve as a positive and welcome outlet during what remains a difficult and challenging time. We’re primed to deliver a best-in-class, integrated media and gaming experience as fans eagerly welcome major leagues and sporting events back to play,” said John Levy, Founder, and CEO of theScore. “To that end, we’re already seeing great momentum building. On theScore, in the few days since baseball’s return, sessions have doubled compared to the days prior. At the same time, in the first week of live baseball on theScore Bet, we nearly matched our total betting handle from Super Bowl week. All with just one of the major sports back at play.”

News tags: Colorado | Coronavirus | COVID-19 | EBITDA | Indiana | John Levy | MLB | theScore | TikTok