PMKR Playmaker Capital Inc

• Q4 2022 pro forma revenue of US$19.0 million, an organic increase of 102% over Q4 2021
• Q4 2022 pro forma Adjusted EBITDA of US$6.8 million, an organic increase of 96% over Q4 2021
• User Sessions on Playmaker’s web properties exceeded 2.6 billion in 2022, an increase of 45% over 2021
• 2023 will be a period of focused integration and enhanced operational efficiency across Playmaker’s core media and affiliate business segments; continued discipline toward accretive M&A opportunities

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 fourth quarter ended December 31, 2022 (“Q4 2022”) and for the full year 2022.

FINANCIAL HIGHLIGHTS (Figures in USD)

USD Millions

For the three months ended

For the year ended

 

Dec. 31 2022

 

Dec. 31 2021

Growth

Dec. 31 2022

Dec. 31 2021

Growth

Pro Forma Revenue1

$19.0

 

$9.4

102%

$47.4

$31.4

51%

Pro Forma Adjusted EBITDA1

$6.8

 

$3.5

96%

$15.3

$11.3

36%

Revenue

$18.7

 

$7.0

168%

$40.3

$14.8

172%

Operating Income

$3.1

 

$0.5

577%

$1.4

$1.8

(23%)

 

• Cash and Cash Equivalents – Cash and cash equivalents were $8.9 million at December 31, 2022 compared to $14.0 million at September 30, 2022.

MANAGEMENT COMMENTARY

Jordan Gnat, CEO of Playmaker commented, “During 2022, our team continued to expand Playmaker’s sports-centric audience by increasing the Company’s digital content distribution channels with additional audio, video and social offerings. 2022 was about integrating our operations and levelling up our team and infrastructure to deliver for our clients and to create deeper connections to our fans. The FIFA World Cup 2022 accelerated engagement across Playmaker’s platforms and geographies, generating above-trend financial results during the fourth quarter. Beyond the transitory quarterly impact of an event like the World Cup, the key to sustainable success and future organic growth is our team’s ability to harness these events to demonstrate our value to commercial partners and also attract net-new users to our properties. We are already seeing the benefits of that in early 2023.”

Mr. Gnat continued, “When we started Playmaker in January 2021, we saw an opportunity to build a highly integrated digital media business focused squarely on the most enduringly loyal, transactional audience available today – the sports fan. This focus has enabled us to generate record growth and profitability even against a challenging backdrop for the broader advertising industry. This audience is stronger than ever and more valuable than ever as evidenced by surging sports media rights fees and increased audience engagement around live sports. We are the #7 ranked digital sports media company in the Americas by web visits, and the #1 in Latin America, and we still see plenty of runway for both organic and acquisitive growth over the next several years as we maintain our focus on building value for shareholders. In 2023, we will deepen our integration efforts and advance operational efficiencies across the premier media and affiliate brands within the Playmaker ecosystem to maximize opportunities across the platform.”

Mike Cooke, CFO of Playmaker added, “While our team continues to see significant and achievable growth opportunities over the next few years, we are committed to generating profitability in lockstep. This dual focus translated into record financial results during 2022, with pro forma revenue of $47.4 million growing 51% from 2021, and pro forma adjusted EBITDA of $15.3 million growing 36% from 2021. With $8.9 million in cash and $10.0 million of available debt as of December 31, 2022, Playmaker is on solid financial footing entering 2023 and is positioned to continue generating profitable growth."

OPERATIONAL HIGHLIGHTS

Media Businesses Continue to Scale & Increase Engagement

• In Q4 2022, Playmaker generated 624 million user sessions across its owned and operated web properties, representing a 27% increase over Q4 2021. For the full year 2022, Playmaker generated more than 2.6 billion web sessions, representing a 45% increase over 2021.
• In Q4 2022, Playmaker’s web properties attracted a monthly high of approximately 100 million users, representing an increase of 18% over Q4 2021; its social media assets had a total of 175 million followers across TikTok, Instagram, Facebook, Twitter and other social platforms.
• Futbol Sites, Playmaker’s Latin American and US Hispanic media business, generated 196 million video views and 525 million social media interactions over the course of the FIFA World Cup 2022 tournament.
• Playmaker expanded its video production expertise in 2022. Canada-based media business, The Nation Network, launched an audio-video podcast portfolio of more than 25 shows that now contribute more than 820,000 monthly streams. Mexico-based property, Cracks, generated more than 600 million YouTube views from its daily video content in 2022 across Cracks Global and several regional Cracks YouTube channels.
• World Soccer Talk, one of Playmaker’s US-based soccer media properties, increased web sessions and users 310% and 290%, respectively, during World Cup 2022 over World Cup 2018.
• For the month of December 2022, Playmaker maintained its position as a leading digital sports media company ranked by Comscore. Playmaker ranks #7 across the Americas by web visits, including #1 in Latin America. Playmaker currently ranks #18 in the US and #12 in Canada, up from #23 and #15, respectively, for the same period 2021.

Acquisition & Integration Efforts Diversify Revenue Sources; Enhance Monetization

• Playmaker now has active affiliate relationships with more than 20 sports betting and streaming partners in 17 U.S. States and in the Province of Ontario. Playmaker acquired leading iGaming affiliate operator, Wedge Traffic (“Wedge”), further diversifying Playmaker’s revenue-generating capabilities and adding to its existing affiliate business with streaming partners as well as the ongoing partnership with Oddschecker.
• Playmaker migrated The Nation Network’s portfolio of team sites as well as DailyFaceoff.com onto its Playmaker-designed and managed front ends in Q4 2022.

Strong Direct Campaign Demand from Corporate Advertisers & Sports Betting Operators

• Playmaker continued to attract growing demand for direct sales from corporate advertisers and sports betting operators in Q4 2022. Against the backdrop of an eventful sports calendar, direct sales on Playmaker’s owned and operated media properties increased by more than 100% in Q4 2022 over the same period 2021, with direct sales accounting for more than 60% of core media advertising sales.

• Playmaker’s fastest-growing customer segment for direct sales is iGaming and sports betting. Direct sales from this segment grew by more than 200% in Q4 2022 compared to the same period 2021, representing approximately 45% of direct sales in the quarter.
• FIFA World Cup 2022 provided significant commercial engagement for Playmaker’s web properties. During the World Cup, Playmaker activated more than 300 direct campaigns with key partners in Canada, the US, and across Latin America with brands such as Visa, adidas, CIBC, Verizon, Betfair, Uber, Cool Bet, McDonald’s, and Scotiabank.

CONFERENCE CALL

The Company will host a management conference call to discuss its Q4 and full-year 2022 financial results on March 21, 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”, “working capital”, and metrics that are presented on a pro forma basis. These measures are not recognized measures under 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 of the Company’s operating subsidiaries before interest, taxes, depreciation and amortization, excluding the impact of head office costs, goodwill impairment expenses and any one-time costs.

“Working capital” is the Company’s current assets minus its current liabilities.

“Pro forma” is an adjustment to incorporate the results of any acquisitions made through the date of this press release, assuming each acquisition 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.

Consolidated Statements of Financial Position

(Stated in U.S. dollars)

 

 

 

 

December

 

December

 

 

 

 

31, 2022

 

31, 2021

Assets

 

 

 

 

 

Current

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,875,692

$

7,111,728

 

Accounts receivable

 

 

12,755,151

 

4,406,719

 

Income taxes receivable

 

 

241,540

 

45,711

 

Inventory

 

 

11,859

 

18,770

 

Prepaid and other current assets

 

 

1,565,724

 

377,061

Total current assets

 

 

23,449,966

 

11,959,989

 

Property and equipment

 

 

939,996

 

778,381

 

Intangible assets

 

 

58,538,596

 

45,808,097

 

Goodwill

 

 

46,098,848

 

28,393,097

 

Deferred tax asset

 

 

1,734,875

 

868,116

 

Other long-term assets

 

 

33,418

 

20,720

Total assets

 

$

130,795,699

$

87,828,400

Liabilities

 

 

 

 

 

Current

 

 

 

 

 

 

Accounts payable

 

$

3,433,147

$

567,572

 

Income taxes payable

 

 

725,925

 

81,264

 

Deferred revenue

 

 

440,302

 

188,993

 

Accrued expenses and other current liabilities

 

 

4,281,061

 

2,623,321

 

Current portion of lease liability

 

 

157,150

 

88,951

 

Current portion of long-term debt

 

 

416,667

 

14,365

 

Current deferred consideration

 

 

2,000,000

 

2,345,759

 

Consideration payable

 

 

11,804,338

 

10,475,031

Total current liabilities

 

 

23,258,590

 

16,385,256

 

Long-term debt

 

 

9,583,333

 

46,708

 

Long-term lease liability

 

 

425,181

 

415,057

 

Deferred tax liability

 

 

7,297,935

 

4,237,822

 

Deferred consideration

 

 

2,438,000

 

1,848,388

 

Contingent consideration

 

 

17,957,182

 

8,837,406

 

Convertible debenture

 

 

15,425,130

 

-

Total liabilities

 

 

76,385,351

 

31,770,637

Shareholders' Equity

 

 

 

 

 

 

Share capital

 

 

65,816,073

 

60,494,370

 

Contributed surplus

 

 

2,057,531

 

606,863

 

Warrant Reserve

 

 

-

 

303,278

 

Accumulated other comprehensive income (loss)

 

 

(1,735,978)

 

(1,368,266)

 

Retained earnings (deficit)

 

 

(11,727,278)

 

(3,978,482)

Total shareholders’ equity

 

 

54,410,348

 

56,057,763

Total liabilities and shareholders’ equity

 

$

130,795,699

$

87,828,400

 

 

 

 

 

 

 

Playmaker Capital Inc.

Consolidated Statements of Net Loss and Comprehensive Loss

For the years ended December 31, 2022 and 2021

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

 

 

 

 

2022

 

2021

 

 

 

 

 

 

 

Revenue

 

$

40,348,138

$

14,820,154

Cost of Sales

 

 

5,287,978

 

1,189,901

Gross Profit

 

 

35,060,160

 

13,630,253

Operating expenses

 

 

 

 

 

 

Salary and wages

 

 

14,614,706

 

5,797,734

 

Advertising, commissions and fees

 

 

7,746,625

 

2,666,087

 

Web services and publishing

 

 

1,331,086

 

613,851

 

General and administration

 

 

1,911,121

 

733,966

 

Professional fees

 

 

1,397,616

 

828,410

 

Bad debt expense

 

 

250,828

 

-

 

Stock-based compensation

 

 

1,227,061

 

576,778

 

Depreciation and amortization

 

 

5,224,756

 

648,441

Total operating expenses

 

 

33,703,799

 

11,865,267

Operating income/(loss)

 

 

1,356,361

 

1,764,986

 

Transaction costs

 

 

(2,844,894)

 

(842,729)

 

Interest expense

 

 

(1,151,417)

 

(130,144)

 

Listing and filing fees

 

 

(9,753)

 

(1,826,331)

 

Other income

 

 

106,706

 

21,761

 

Other expenses

 

 

(181,807)

 

(19,819)

 

Loss on impairment

 

 

(2,133,339)

 

-

 

Change in fair value of consideration

 

 

(1,274,771)

 

(2,901,005)

 

Change in fair value of convertible debenture

 

 

(424,496)

 

(678,429)

 

Foreign exchange gain (loss)

 

 

(854,468)

 

849,908

Loss before taxes

 

 

(7,411,878)

 

(3,761,802)

 

Deferred tax

 

 

945,315

 

324,824

 

Current tax

 

 

(1,282,233)

 

(105,278)

Net loss

 

$

(7,748,796)

$

(3,542,256)

Other comprehensive loss

 

 

 

 

 

 

Gain (loss) on translation

 

 

(367,712)

 

(1,459,062)

Comprehensive loss

 

$

(8,116,508)

$

(5,001,318)

Basic and diluted net and comprehensive income (loss) per share

 

$

(0.04)

$

(0.03)

Basic and diluted weighted average number of shares

 

 

218,744,212

 

128,850,587

Playmaker Capital Inc.

Consolidated Statements of Cash Flows

For the years ended December 31, 2022 and 2021

(Stated in U.S. dollars)

Operating activities

 

 

2022

 

2021

Net loss

 

$

(7,748,796)

$

(3,542,256)

Depreciation and amortization

 

 

5,224,756

 

648,441

Bad debt expense

 

 

250,828

 

-

Share-based compensation

 

 

1,227,061

 

576,778

Listing fees, RTO costs

 

 

-

 

618,184

Non-cash interest expense

 

 

34,241

 

107,434

Loss on impairment

 

 

2,133,339

 

-

Change in fair value of contingent consideration

 

 

1,274,771

 

2,901,005

Change in fair value of convertible debenture

 

 

424,496

 

678,429

Unrealized foreign exchange (gain) loss

 

 

711,729

 

(864,176)

Deferred income tax recovery

 

 

(945,315)

 

(324,824)

Change in non-cash working capital

 

 

(5,104,246)

 

(284,060)

Net cash flows provided by (used in) operating activities

 

 

(2,517,136)

 

514,955

Investing activities

 

 

 

 

 

Acquisition of Futbol Sites, net of cash acquired

 

 

-

 

(6,228,466)

Cash acquired through RTO

 

 

-

 

162,375

Acquisition of Fanaticos

 

 

-

 

(204,290)

Acquisition of Yardbarker, net of cash acquired

 

 

-

 

(9,331,068)

Acquisition of SoccerMemes

 

 

-

 

(100,000)

Acquisition of Two-Up, net of cash acquired and debt assumed

 

 

-

 

(676,764)

Acquisition of Varsky

 

 

-

 

(175,804)

Acquisition of TNN, net of cash acquired

 

 

-

 

(4,163,915)

Acquisition of SuperPoker

 

 

-

 

(1,727,806)

Acquisition of Cracks

 

 

-

 

(478,141)

Acquisition of Futmarketing

 

 

(875,000)

 

-

Acquisition of SportsDrop

 

 

(1,200,000)

 

-

Acquisition of World Soccer Talk

 

 

(350,000)

 

-

Acquisition of JuanFutbol

 

 

(400,000)

 

-

Acquisition of Pasion Aguila

 

 

(125,000)

 

-

Acquisition of PlanetaBocaJuniors

 

 

(50,000)

 

-

Acquisition of Wedge Traffic, net of cash acquired

 

 

(7,719,108)

 

-

Settlement of deferred and contingent consideration

 

 

(9,628,900)

 

(500,000)

Purchase of property and equipment

 

 

(209,273)

 

(246,415)

Purchase of intangibles

 

 

(119,258)

 

(55,590)

Net cash flows used in investing activities

 

 

(20,676,539)

 

(23,725,884)

Financing activities

 

 

 

 

 

Issuance of preferred shares

 

 

-

 

5,505,000

Issuance of common shares

 

 

-

 

19,881,600

Issuance costs on preferred and common shares

 

 

-

 

(1,236,391)

Options exercised

 

 

-

 

36,704

Warrants exercised

 

 

162,174

 

18,066

Long-term debt drawn

 

 

11,333,336

 

-

Long-term debt repayments

 

 

(1,333,336)

 

(139,587)

Convertible debenture

 

 

15,000,000

 

-

Lease liability principal payments

 

 

(195,690)

 

(28,410)

Net cash flows provided by financing activities

 

 

24,966,484

 

24,036,982

Increase in cash and cash equivalents

 

 

1,772,809

 

826,053

Foreign exchange impact

 

 

(8,845)

 

(345,683)

Cash and cash equivalents, beginning of year

 

 

7,111,728

 

6,631,358

Cash and cash equivalents, end of year

 

$

8,875,692

$

7,111,728

1 Includes impact of all acquisitions made to date

View source version on businesswire.com: https://www.businesswire.com/news/home/20230320005651/en/

MEDIA & INVESTOR RELATIONS CONTACTS Jonathan Ross – E: jon.ross@loderockadvisors.com | T: (416) 283-0178 Elias Blahacek – E: elias@playmaker.fans | T: (416) 254-4345