Score Media And Gaming’s 2Q Revenue Misses Estimates; Shares Plunge 3%

Score Media and Gaming (SCR), commonly known as theScore, slid about 3% in after-hours trading on Tuesday after the company posted lower second quarter revenue than expected by analysts.

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Revenue in 2Q fell 15.9% year-over-year to C$5.59 million and missed the consensus estimate of C$6.65 million. Media revenue increased 17% year-over-year to C$8 million, a 2Q record. Additionally, record media revenue was partially offset by negative net gaming revenue of C$2.4 million.

theScore reported a loss of C$0.45 per share, compared to a loss of C$0.29 in the same quarter last year.

Total gaming handle on theScore Bet increased 491% year-over-year, hitting a record C$81.6 million in the second quarter.

theScore’s CEO John Levy said, “We achieved record gaming handle and another quarter of solid media revenue growth in our fiscal 2021 second quarter. The strong second quarter results highlight theScore’s ongoing momentum and our users’ active, growing engagement with our mobile offerings.”

“Second quarter handle of $81.6 million on theScore Bet grew 491% year-over-year and 46% over the first quarter. We also recorded our highest-ever second quarter media revenue, with 17% year-over-year growth driven by our compelling content as well as our outstanding North American reach and audience engagement,” Levy added.

In March, theScore completed a U.S. IPO and a Nasdaq listing, raising US$186.3 million to fund the expansion of sports betting operations in North America. (See Score Media and Gaming stock analysis on TipRanks)

On April 11, Canaccord Genuity analyst Matthew Lee reiterated a Buy rating on the stock with a price target of C$55.00 (113% upside potential). Lee is the only analyst to have offered a stock rating for theScore in the last three months. Shares have fallen by about 30% in the past month.