Canadian sports and information company theScore reported a huge increase in its net losses for the year. Year-over-year, from the end of August 2018 to the end of August 2019, the company reported a total net loss increase of 59.3%. In most years, a significant increase in net losses experienced by a company would be disappointing, if not downright alarming. However, theScore has a reasonable explanation for why this occurred: It spent a heck of a lot more money in the last 12 months as it made the move (and investment) to enter the sportsbook marketplace in the United States. The move transitions theScore from a pure media and entertainment company into the online sportsbook world as well, a move that company officials believe will be very profitable for them in the future.
Any time a company makes the decision to enter a new market, there is bound to be additional cost associated with the move. That’s exactly what happened with theScore in its last fiscal year. Entering the sportsbook arena in general — and doing so in the United States — was certainly a costly proposition for the company, especially since they didn’t already own and/or operate an online sportsbook before.
At the latter part of theScore’s fiscal year, the company launched its online sportsbook in the state of New Jersey. Called Bet.Works, the online sportsbook is available to players who are physically located in New Jersey. Because the company spent a good chunk of the fiscal year preparing for the official launch of the online sportsbooks, costs rose dramatically year-over-year.
Costs for this fiscal year totaled $40.7 million, a 20.1% increase over the $33.9 million in costs for the previous fiscal year. Personnel costs were a major contributing factor, as they increased from $16.2 million last fiscal year to $18.8 million this fiscal year, with much of that increase coming in the final quarter.
Other increased costs were attributable to facilities, administrative and “other,” which increased 71% year-over-year to $10.6 million. Spending on content increased from $1.8 million to $2.1 million as well. That said, spending on marketing remained consistent at $2.5 million total. All this increased spending is what fueled the 59.3% increase in net loss, from $5.9 million last fiscal year to $9.4 million this fiscal year. While the numbers indicate that sports betting is getting more and more popular, it`s possible one hasn`t tried it yet. If you are among them, feel free to use the visit the following site.
While costs were up dramatically year-over-year as a result of theScore’s sportsbook launch, revenue was higher as well. In fact, overall revenue for the fiscal year went from $27.7 million last fiscal year to $31.1 million this fiscal year, a nice 12% increase. Sales increased in both the Canadian market (28.4% increase to $13.1 million) and other markets, most predominantly in America (up 2.9% to $18 million).
In just the final quarter of the fiscal year — when the online sportsbook went live in New Jersey — revenue increased to $6.4 million, an increase from the $5.1 million in the final quarter of fiscal year 2018.
theScore has a positive outlook
Despite the huge increase in net losses year-over-year, company officials are not worried about the future. In fact, they expected this increase in losses as they invested in New Jersey’s sports betting market, and also came to an agreement with Penn National Gaming to launch in 11 other U.S. states as well.
theScore’s founder and CEO John Levy said these moves give the company the potential to reach approximately 30% of the total U.S. population with their products. If you want to get in on the sports betting action, check out one of the online sportsbooks below.
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