- 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 7 million streams in Q1 2023
- Playmaker was named the North American Sports Media Company of the Year by SBC
Toronto, May 15, 2023 – Playmaker Capital Inc. (TSX-V: PMKR) (“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”).
- 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.
“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.”
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.
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.
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.
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”).
To sign up for Playmaker’s Investor Alerts, visit: playmaker.fans/investors.
MEDIA & INVESTOR RELATIONS CONTACTS
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