PMKR Playmaker Capital Inc

• Q1 2023 revenue of US$15.7 million, an increase of 69% on a pro forma basis over Q1 2022
• Q1 2023 Adjusted EBITDA (excluding Corporate Segment) of US$5.9 million, an increase of 76% on a pro forma basis over Q1 2022
• Q1 2023 Adjusted EBITDA (including Corporate Segment) of US$4.9 million, an increase of 127% on a pro forma basis over Q1 2022
• Playmaker’s North American-produced video podcasts generated a record 3.7 million streams in Q1 2023
• Playmaker was named the North American Sports Media Company of the Year by SBC

Playmaker Capital Inc. (TSX-V: PMKR) (the “Company” or “Playmaker”), the digital sports media company that delivers authentic content experiences through its portfolio of sports media brands, is pleased to report its financial results for the first quarter ended March 31, 2023 (“Q1 2023”).

FINANCIAL HIGHLIGHTS (Figures in USD)

USD Millions

For the three months ended

 

Mar. 31 2023

Mar. 31 2022

Growth

Pro Forma Revenue1

$15.7

$9.3 

69%

Pro Forma Adjusted EBITDA1 (excl. Corporate segment)

$5.9

$3.3 

76%

Pro Forma Adjusted EBITDA1 (incl. Corporate segment)

$4.9

$2.2 

127%

Revenue

$15.7

$5.4 

193%

Operating Income

$2.8

($0.6) 

n.m.

 

• Cash and Cash Equivalents – Cash and cash equivalents were $11.4 million at March 31, 2023 compared to $8.9 million at December 31, 2022.

MANAGEMENT COMMENTARY

“Q1 2023 was another period of strong growth for Playmaker, as our ecosystem of sports media properties delivered highly engaging, relevant content to our fans during a busy period for professional and college sports,” said Jordan Gnat, CEO of Playmaker. “Deepening our connection to sports fans in the US and Canada is key to our growth strategy, and I am pleased to report that engagement against our North American web, podcast, video, and newsletter products experienced significant year-over-year growth in Q1.”

Jordan Gnat continued, “As I articulated when we reported our Q4 results, 2023 is about deepening our integration efforts and advancing operational efficiencies across the Playmaker ecosystem. We are off to a great start. Efforts are underway to integrate our affiliate business, Wedge, with our scale of audience across the Americas. We see a strong organic revenue opportunity here and will continue to work to optimize our growing audience through our full-service monetization stack – programmatic, direct sales, direct-to-consumer, and affiliate – while delivering our fans the best local, relevant content that is available when, how and where they want it.”

Mike Cooke, CFO of Playmaker added, “We are very pleased with the revenue growth we delivered in Q1, but even more importantly, profitability continues to improve, with adjusted EBITDA growing faster than revenue during the period. Our strong profitability and adjusted EBITDA margin in Q1 is a direct result of our emphasis on improving efficiencies across the entire business, and as of March 31, 2023, we have sufficient cash-on-hand to continue to execute against both organic and inorganic growth opportunities in a focused, strategic way.”

OPERATIONAL HIGHLIGHTS

Media Businesses Continue to Scale & Grow Engagement

Playmaker experienced strong engagement metrics across its media properties in Q1 2023, a period that included several catalysts including Super Bowl 57, NCAA March Madness, and the NHL Trade Deadline. During the quarter, Playmaker web properties generated 642 million sessions.

• In Q1 2023, Playmaker’s social media accounts collectively had 180 million followers and its web properties attracted a monthly high of more than 101 million users, representing an increase of 14% over Q1 2022.
• North American user sessions on Playmaker web properties increased 66% in Q1 2023 over Q1 2022.
• The Nation Network continued to expand its lineup of video podcasts and achieved a quarterly record 3.7 million streams in Q1 2023, an increase of 197% over Q1 2022.
• Yardbarker Media grew its daily newsletter subscriber base to more than 400,000 in Q1 2023. Additionally, Yardbarker generated a monthly average of more than 20 million sessions in Q1 2023, an increase of more than 100% over Q1 2022.
• Daily Faceoff, a leading web property specializing in league-wide NHL news and fantasy tools, increased traffic by more than 25% in Q1 2023 compared to Q1 2022, driven by enhanced performance since migrating to Playmaker designed and managed front-end technology.

Strong Partnership Demand from Corporate Advertisers, Sports Betting Operators & Leagues

Playmaker executed multiple long-term direct sales and partnerships in Q1 2023. Direct sales accounted for 49% of Playmaker’s core media advertising sales for the period, an increase of 32% over Q1 2022. Direct sales is a growing component of Playmaker’s revenue generation, and the Company will continue to focus on expanding this portion of the business to optimize its monetization.

• Futbol Sites, in partnership with Crypto.com, produced a three-part video series capturing the off-field personalities of Paris Saint-Germain players, including Lionel Messi & Neymar Jr. Futbol Sites also executed display and branded content campaigns with Amazon Prime, Betano, and Mastercard, among others.
• Playmaker’s affiliate business, Wedge, had a strong Q1, benefiting from the launch of Ohio sports betting in January, the NFL playoffs, March Madness, and the launch of Massachusetts sports betting in March.
• Playmaker has identified its affiliate business as a high-growth opportunity, particularly in the U.S. market as additional states regulate online sports betting and iGaming. Playmaker’s Senior Leadership and Revenue Operations teams have begun integration efforts with its digital media businesses and Wedge to unlock value by combining its vast audience with Wedge’s user acquisition and conversion expertise.
• The Nation Network activated campaigns with Betano, Recipe Unlimited, Betway, Athletic Brewing, and Boston Pizza, among others, for marquee NHL events including the Trade Deadline, and subsequent to Q1 2023, the Stanley Cup Playoffs.
• Futbol Sites entered strategic collaborations with global sports leagues and federations in Q1 2023. The business became the official digital agency and commercial partner for the Argentine Football Association in North America and joined the NBA’s affiliate network for its League Pass subscription product. As part of the NBA collaboration, Futbol Sites has also been able to enhance its content offering in seven Latin American markets with official NBA video highlights.
• Michael Bellom was promoted to Head of Revenue Operations at Playmaker, bringing several groups under one leadership structure to create operational efficiencies and increase monetization across all properties.

CONFERENCE CALL

The Company will host a management conference call to discuss its Q1 2023 financial results on May 16, 2023, at 10:00 a.m. (Eastern Time). Hosting the call will be Jordan Gnat, Chief Executive Officer; Jake Cassaday, Chief Operating Officer; and Mike Cooke, Chief Financial Officer.

To participate in the conference call, please dial-in using one of the following numbers approximately five minutes prior to commencement and ask to join the Playmaker call:

Dial-In Number (Toll Free): 1-844-707-6933

Dial-In Number (International): 1-412-317-5796

A replay of the Conference Call will be made available at playmaker.fans/investors.

To sign up for Playmaker Investor Alerts, visit: PMKR Investor Alerts.

TSX VENTURE EXCHANGE DISCLAIMER

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-IFRS MEASURES

Some of the information presented in this press release includes non-IFRS financial measures, including, “EBITDA”, “Adjusted EBITDA”, and metrics that are presented on a pro forma basis. These measures are not recognized measures under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.

“EBITDA” is earnings before interest, taxes, depreciation and amortization.

“Adjusted EBITDA” is earnings before interest, taxes, depreciation and amortization, stock-based compensation expenses and any one-time costs. “Adjusted EBITDA (excl. Corporate segment)” also excludes the impact of head office costs.

“Pro Forma” is an adjustment to incorporate the results of any acquisitions and dispositions made through the date of this press release, assuming each acquisition or disposition occurred on the first day of the period being presented.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker’s current expectations regarding future events. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT PLAYMAKER CAPITAL INC.

Playmaker Capital Inc. (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that acquires and integrates premier fan-centric media brands, curated to deliver highly engaged audiences of sports fans to tier one advertisers, online sports betting operators, and sports federations and leagues. Leveraging its in-house technology stack, Bench, and with a 360-degree view of sports fans, Playmaker delivers authentic digital content experiences for sports fans and best-in-class results for its partners across the Americas.

Playmaker reports in U.S. dollars, except where noted otherwise, and in accordance with International Financial Reporting Standards (“IFRS”).

For more information, visit: http://www.playmaker.fans or contact Playmaker Chief Executive Officer Jordan Gnat via email jgnat@playmaker.fans | T: (416) 815-4993

To sign up for Playmaker’s Investor Alerts, visit: playmaker.fans/investors.

 

 

 

 

 

 

Playmaker Capital Inc.

Condensed Consolidated Interim Statements of Financial Position

(Stated in U.S. dollars)

 

 

 

March 31,

 

December 31,

 

 

 

2023

 

2022

 

 

 

(Unaudited)

 

(Audited)

Assets

 

 

 

 

 

Current

 

 

 

 

 

Cash and cash equivalents

 

$

11,388,448

 

$

8,875,692

 

Accounts receivable

 

 

8,891,215

 

 

12,755,151

 

Income taxes receivable

 

 

270,607

 

 

241,540

 

Prepaid and other current assets

 

 

1,200,477

 

 

1,577,583

 

Assets held for sale

 

 

1,928,644

 

 

-

 

Total current assets

 

 

23,679,391

 

 

23,449,966

 

Property and equipment

 

 

907,745

 

 

939,996

 

Intangible assets

 

 

56,347,749

 

 

58,538,596

 

Goodwill

 

 

45,166,677

 

 

46,098,848

 

Deferred tax asset

 

 

1,737,184

 

 

1,734,875

 

Other long-term assets

 

 

35,373

 

 

33,418

 

Total assets

 

$

127,874,119

 

$

130,795,699

 

Liabilities

 

 

 

 

 

Current

 

 

 

 

 

Accounts payable

 

$

2,023,531

 

$

3,433,147

 

Income taxes payable

 

 

1,443,186

 

 

725,925

 

Deferred revenue

 

 

290,003

 

 

440,302

 

Accrued expenses and other current liabilities

 

 

2,166,718

 

 

4,281,061

 

Current portion of lease liability

 

 

155,931

 

 

157,150

 

Current portion of long-term debt

 

 

1,041,667

 

 

416,667

 

Current deferred consideration

 

 

3,580,000

 

 

2,000,000

 

Consideration payable

 

 

10,256,200

 

 

11,804,338

 

Liabilities directly associated with assets held for sale

 

 

471,560

 

 

-

 

Total current liabilities

 

 

21,428,796

 

 

23,258,590

 

Long-term debt

 

 

8,958,333

 

 

9,583,333

 

Long-term lease liability

 

 

384,005

 

 

425,181

 

Deferred tax liability

 

 

7,135,185

 

 

7,297,935

 

Deferred consideration

 

 

889,000

 

 

2,438,000

 

Contingent consideration

 

 

18,120,143

 

 

17,957,182

 

Convertible debenture

 

 

16,037,242

 

 

15,425,130

 

Total liabilities

 

 

72,952,704

 

 

76,385,351

 

Shareholders' Equity

 

 

 

 

 

Share capital

 

 

65,825,893

 

 

65,816,073

 

Contributed surplus

 

 

2,353,833

 

 

2,057,531

 

Accumulated other comprehensive income (loss)

 

 

(1,691,911

)

 

(1,735,978

)

Retained earnings (deficit)

 

 

(11,566,400

)

 

(11,727,278

)

Total shareholders’ equity

 

 

54,921,415

 

 

54,410,348

Total liabilities and shareholders’ equity

 

$

127,874,119

 

$

130,795,699

 

 

 

 

 

 

 

Playmaker Capital Inc.

Condensed Consolidated Interim Statements of Net Income (Loss)

and Comprehensive Income (Loss)

Unaudited

(Stated in U.S. dollars, except share information)

For the three months ended March 31

 

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

Revenue

 

$

15,688,746

 

$

5,361,089

 

Cost of Sales

 

 

2,018,734

 

 

380,814

 

Gross Profit

 

 

13,670,012

 

 

4,980,275

 

Operating expenses

 

 

 

 

 

Salary and wages

 

 

4,180,186

 

 

2,873,999

 

Advertising, commissions and fees

 

 

3,289,220

 

 

478,803

 

Web services and publishing

 

 

479,780

 

 

223,252

 

General and administration

 

 

459,371

 

 

406,411

 

Professional fees

 

 

359,486

 

 

462,042

 

Stock-based compensation

 

 

305,407

 

 

213,810

 

Depreciation and amortization

 

 

1,780,096

 

 

940,654

 

Total operating expenses

 

 

10,853,546

 

 

5,598,971

 

Operating income (loss)

 

 

2,816,466

 

 

(618,696

)

Transaction costs

 

 

(65,037

)

 

(648,934

)

Interest expense

 

 

(527,470

)

 

(10,483

)

Listing and filing fees

 

 

(6,135

)

 

(5,827

)

Other income

 

 

22,137

 

 

7,823

 

Other expenses

 

 

(11,721

)

 

(12,226

)

Change in fair value of consideration

 

 

(166,930

)

 

(1,896,772

)

Change in fair value of convertible debenture

 

 

(604,749

)

 

-

 

Foreign exchange gain (loss)

 

 

204,532

 

 

(137,314

)

Income (loss) before taxes

 

 

1,661,093

 

 

(3,322,429

)

Current tax

 

 

(1,178,177

)

 

(22,139

)

Net income (loss) from continuing operations

 

$

482,916

 

$

(3,344,568

)

Net loss from discontinued operations, after tax

 

$

(322,038

)

$

(54,315

)

Net income (loss)

 

$

160,878

 

$

(3,398,883

)

Other comprehensive income (loss)

 

 

 

 

 

Gain (loss) on translation

 

 

44,067

 

 

842,061

 

Comprehensive income (loss)

 

$

204,945

 

$

(2,556,822

)

Basic net income (loss) per share from continuing operations

 

$

-

 

$

(0.02

)

Diluted net income (loss) per share from continuing operations

 

$

-

 

 

N/A

 

Basic weighted average number of shares

 

 

226,446,107

 

 

212,960,634

 

Diluted weighted average number of shares

 

 

237,565,477

 

 

N/A

 

 

 

 

 

 

 

 

Playmaker Capital Inc.

Condensed Consolidated Interim Statements of Cash Flow

Unaudited

(Stated in U.S. dollars)

For the three months ended March 31

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

Operating activities

Net income (loss)

 

$

160,878

 

$

(3,398,883

)

Depreciation and amortization

 

 

1,780,096

 

 

940,836

 

Stock based compensation

 

 

305,407

 

 

213,810

 

Non-cash interest

 

 

9,251

 

 

6,543

 

Change in fair value of contingent consideration

 

 

166,930

 

 

1,896,772

 

Change in fair value of convertible debenture

 

 

604,749

 

 

-

 

Foreign exchange (gain) loss

 

 

(60,789

)

 

137,314

 

Net change in non-cash working capital

 

 

1,350,693

 

 

(401,691

)

Cash flows from (used in) operating activities 4,317,215 (605,299 )

Investing activities

Acquisition of Futmarketing

 

 

-

 

 

(875,000

)

Settlement of consideration

 

 

(1,524,282

)

 

(429,691

)

Purchase of property and equipment

 

 

(78,522

)

 

(25,117

)

Purchase of intangibles

 

 

(9,145

)

 

(44,040

)

Cash flows used in investing activities

 

 

(1,611,949

)

 

(1,373,848

)

Financing activities

Warrants exercised

 

 

-

 

 

26,813

 

Cash payment for lease liability

 

 

(46,192

)

 

(40,161

)

Cash flows used in financing activities

 

 

(46,192

)

 

(13,348

)

Increase (decrease) in cash

 

 

2,659,074

 

 

(1,992,495

)

Foreign exchange impact

 

 

(146,318

)

 

(52,351

)

Cash, beginning of period

 

 

8,875,692

 

 

7,111,728

 

Cash, end of period

 

$

11,388,448

 

$

5,066,882

 

___________________________ 1 Pro forma information includes the impact of all acquisitions & dispositions made to date. “Pro Forma Adjusted EBITDA” does not include impact of one time costs and stock compensation. “Pro Forma Adjusted EBITDA (excl. Corporate segment)” also excludes the impact of head office costs.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230515005806/en/

MEDIA & INVESTOR RELATIONS Jonathan Ross – E: jon.ross@loderockadvisors.com | T: (416) 283-0178 Elias Blahacek – E: elias@playmaker.fans | T: (416) 254-434