TORONTO – After years of financial pressures, Score Media, which owns and operates analog sports channel The Score, seems to have turned things around as revenue, earnings and income have all increased.
Revenue for the year ended August 31st, increased to $25.1 million, up 25.6% compared to the end of 2004. EBITDA increased to $4.8 million, up by $4.4 million over ’04. Net income increased $3.2 million – a profit of $2.8 million compared to a loss of $427,000 in the prior year. The company also refinanced its short-term bank loans with a $15 million credit facility comprised of a five-year term loan and a $5 million working capital loan.
"This has been a break-out year for Score Media," said John Levy, chairman and CEO of Score Media, in the press release. "Our performance and financial results in 2005 have set the stage for substantial growth as we continue to develop The Score Television Network and expand into exciting related sports properties."
The first major initiative of the year was the launch of Score Poker, an interactive, "play-for-fun" poker web site. Score Poker hosts weekly and monthly tournaments targeted to similar demographic markets as the TV channel (young, sports-hungry men).
The second initiative, announced last month, was the launch of Score Mobile, which delivers up-to-the-minute sports scores and information to a cell phone. It’s currently available to customers of Bell Mobility and Rogers Wireless, with other major wireless carriers expected to launch on their networks in the near future.
The third programming development is a partnership with Standard Radio to launch Hardcore Sports Radio, an all-sports satellite radio station on Standard’s co-owned SIRIUS Canada satellite radio.
The neat thing for The Score is that this channel will be carried throughout North America.
Advertising revenues for the year ended August 31, 2005 increased by approximately $1.0 million compared to the prior year.
Thanks to a license amendment boosting its wholesale fee recently, subscriber revenue increased by approximately $4.1 million for the year ended August 31, 2005 compared to the prior period. This increase in subscriber revenue was a result of new basic and discretionary wholesale rates that were implemented with several broadcast distribution undertakings in the first and second quarters of fiscal 2005, as well as an increase in the total number of subscribers.
On January 21, 2004, The Score received CRTC approval of its license renewal for a full term ending August 31, 2010, and that approval included a new authorized basic wholesale rate of $0.14, an increase of 40% from The Score’s previously authorized basic wholesale rate of $0.10.
Operating expenses excluding rights fees were $19.3 million for the year ended August 31, 2005 compared to $17.6 million in the prior year, representing an increase of $1.7 million. This increase resulted from higher marketing expenses associated with media advertising, increased occupancy costs resulting from a new property lease at The Score’s facilities, as well as expenses associated with federal tariffs for music rights, greater CRTC license fees, and increased staffing to support the general increase in business, says the release.
Program rights were $1.2 million for the year ended August 31, 2005, compared to $1.9 million in the prior year. Certain program rights for the year ended August 31, 2005 increased for live events such as Toronto Raptors basketball and NCAA basketball, but decreased overall, reflecting lower program rights fees on World Wrestling Entertainment properties as well as lower program rights costs for other programs. In addition, the NHL lock-out resulted in a one-year deferral of the rights fees payable to the NHL for usage of hockey news highlights.
For more, go to www.scoremedia.ca.
