Score Media reports Q1 earnings, announces new content partnership

Jan
10

CNW Group/Score Media Inc.

Score Media Inc.'s mobile application seen on a BlackBerry smartphone from Research In Motion Ltd. (left) and an iPhone from Apple Inc.

Fans of The Score television network will be pleased to hear the Canadian sports station signed a new content partnership on Monday, though investors in parent company Score Media Inc. may be less pleased with its latest earnings report.

before taxes and interest (EDITDA) of $1.9-million for the three months ended November 30, 2011, down 30% from the $2.7-million Score Media earned during the same period in 2010. The company attributed the profit dip to a planned spending increase on its digital media platforms, including theScore.com and smartphone applications such as ScoreMobile and SportsTap.

Net profit for the quarter was $212,000, a 75% drop from the $856,000 the company reported for the first quarter of its 2011 fiscal year.

Establishing digital media sales offices in New York and Chicago and hiring Ethan Ross to oversee them are among the expenses incurred by Score Media during the start of its 2012 fiscal year. The company also redesigned its ScoreMobile app for Apple Inc. hand-held devices and hired sportswriter Justin Bourne to write for its new hockey blog, Backhand Shelf between early September and late November.

Revenue before expenses grew to $13.4-million, a 14% increase from the $11.8-million the company generated between September and November of 2010. For the first time, the company broke out broadcast and digital revenues separately, reporting a 14% year-over-year increase in broadcast revenues to $12.4 million and a 16% year-over-year increase in digital revenues to $1-million.

to provide at least 250 hours of live college football, basketball and hockey games to Score Media's various platforms every year. While the deal includes access to some of the top college conferences in the United States, such as Pac-12 and Conference USA, particular emphasis is being placed on one sport considered most appealing to The Score's viewership.

"Given the Canadian sports fans' love for quality ice hockey, the deal features live coverage of top-flight programs including the University of Minnesota, University of Wisconsin, University of Denver and the University of North Dakota," the company said in a news release.

"These schools have produced NHL stars including Jonathan Toews, Phil Kessel, Zach Parise and Thomas Vanek, and feature numerous Canadian players on their current rosters."

The company's ScoreMobile app averaged 3.3 million unique users per month during the quarter and theScore.com Website attracted 1.2 million unique monthly visitors; a 140% increase from the same period in 2010.