TORONTO – Despite the popularity of its sports apps, Score Media reported a $1.6 million net loss for the third quarter ended May 31, 2012.
Consolidated revenues for the period were $12.7 million, down from $13.1 million in the same period last year. Broadcast revenues were $11.5 million compared to $12.3 million year-over-year, while digital media revenues improved to $1.1 million from $800,000.
The company said that broadcast revenues were impacted by anticipated revenue reductions from the closure of theScore Satellite Radio and lower contra revenues, as well as “recent softness” in the overall television advertising market.
EBITDA for the quarter was $453,000, down sharply from $2.1 million in the previous year, primarily as a result of a planned increase in expenditures on personnel and technology to support the “significant growth” in its digital media platforms’ audiences.
ScoreMobile applications averaged 3.5 million unique users per month in the quarter, a 46% increase over the same time last year, while theScore.com averaged 1.4 million unique users per month, a 38% increase.
"Through investment in our digital platforms, we have again enjoyed significant audience growth year-over-year," said chairman and CEO John Levy, in a statement. "This has enabled us to increase revenues generated through our industry leading mobile apps ScoreMobile and ScoreMobile FC, theScore.com website as well as the exclusive content showcased on our dedicated YouTube channel and on iTunes.
"Despite the recent softness in the television advertising market, our broadcast business remains solid and profitable and we remain strongly committed to developing and incorporating new and unique programming for theScore Television Network, such as our flagship afternoon show Live @theScore. This strategy leaves us well placed as the market begins to shows signs of recovery."
