Canadian digital media company theScore said the launch of its mobile sportsbook app in New Jersey remains on schedule following the release of its results for the third quarter of its financial year.
The company posted a 93.2% year-on-year increase in net loss for the three months ended 31 May 2019. This increase, it said, was “primarily the result of additional expenses relating to the ongoing development of theScore’s sports betting business.”
In 2018, theScore became the first media company to announce plans to launch a mobile sportsbook in the US. It will initially go live in the New Jersey market, under Monmouth Park Racetrack’s licence, and aims to roll out the offering in the coming months.
“The great work in Q3 by our team and partners at Bet.Works means we’re right on schedule for the launch of what we believe will be a truly best-in-class mobile sportsbook,” John Levy, founder and chief executive of theScore said. “We can’t wait to show sports bettors in the US what we’ve been building – starting with New Jersey.
“theScore’s sportsbook will deliver a unique mobile betting experience that will be tightly integrated with our flagship app to create a powerful ecosystem by a brand already trusted by millions of sports fans,” Levy continued. “theScore is going all-in on sports betting, and our established position as a leader in mobile sports makes this an incredible opportunity.”
The company’s revenues increased, from $7.2m to a Q3 record of $8.5m.
However, as the company focused on the development of the sportsbook app, facilities and administrative costs almost doubled in the three-month period ending on May 31st, 2019, from CAD$1.3m to $2.5m.
Marketing and personnel costs also increased, by 22.5% and 23.2% respectively, as total expenses increased from $10.4m to $8.2m. This resulted in a net loss for the quarter of $1.7m.
Total average monthly active user sessions of theScore mobile app reached 395 million in Q3. Total video views of theScore esports’ content reached a record 64 million for Q3 F2019, a 188% increase from the previous year.
“It was also a great quarter for our core business,” Levy said. “Advertising revenue achieved a new Q3 record, while engagement on our media app and audience growth across our esports and social platforms was also extremely positive.”