What happened
Score Media and Gaming (SCR +0.00%), aka "theScore," didn't put many points on the board Wednesday. The Canadian sports media and gambling services company's stock fell by almost 10% on the back of discouraging quarterly results.
So what
For its third quarter, Score earned 6.4 million Canadian dollars ($5.1 million) in revenue. While its media operations brought in CA$8.9 million ($7.1 million), this was offset by a negative result for gaming at CA$2.5 million ($2 million). Regardless, the total result was more than double Q3 2020's CA$2.4 million ($1.9 million).
Image source: Getty Images.
However, Score's net loss deepened considerably, to over CA$37.1 million ($29.7 million) from the year-ago quarter's deficit of almost CA$10.7 million ($8.6 million).
That revenue number fell well short of analyst estimates, which on average were for CA$9.3 million ($7.4 million). Bottom-line forecasts weren't readily available, but those prognosticators were collectively expecting a non-GAAP (adjusted) EBITDA loss a bit shy of CA$9 million ($7.2 million); due to high expansion costs and fees related to its March U.S. IPO, the actual shortfall was far steeper, at over CA$21 million ($16.8 million).
Now what
Investors shouldn't be too shaken by Score's limp Q3, as the company is about to blow through some green lights. The main one is the Canadian parliament's recent passing of a sports gambling bill. Also, on the back of online gambling liberalization in the U.S., Score is poised to launch its sports wagering app in at least four American states in the near future.
