Playmaker Capital Inc. Reports First Quarter 2022 Results Highlighted by Continued Organic Growth and Profitability

Rhea-AI Summary

Playmaker Capital reported a strong Q1 2022, achieving pro forma revenue of $5.8 million, a 37% increase year-over-year. Trailing twelve-month pro forma revenue reached $25.4 million, up 78%. Adjusted EBITDA for Q1 was $1.7 million, increasing 16%, with a trailing twelve-month total of $9.5 million—up 80%. The company reported 88 million monthly users and completed acquisitions of Futmarketing and The Sports Drop, enhancing its media presence. Cash reserves stood at $5.1 million, with a $15 million credit facility secured to support growth strategies.

Positive

• Pro forma revenue increased by 37% to $5.8 million in Q1 2022.
• Trailing twelve-month pro forma revenue rose by 78% to $25.4 million.
• Adjusted EBITDA increased by 16% to $1.7 million in Q1 2022.
• Acquired Futmarketing and The Sports Drop, bolstering media and marketing capabilities.
• Achieved a monthly user base of 88 million, a 55% increase from Q1 2021.

Negative

• Operating loss increased to $0.7 million in Q1 2022 from a loss of $0.1 million in Q1 2021.
• Cash and cash equivalents decreased to $5.1 million from $7.1 million at the end of 2021.

• Q1 2022 pro forma revenue was U.S. $5.8 million, an organic increase of 37% over Q1 2021
• Trailing twelve-month pro forma revenue was U.S. $25.4 million, an organic increase of 78% over the previous twelve months
• Q1 2022 pro forma Adjusted EBITDA was U.S. $1.7 million, an organic increase of 16% over Q1 2021
• Trailing twelve-month pro forma Adjusted EBITDA was U.S. $9.5 million, an organic increase of 80% over the previous twelve months

TORONTO--(BUSINESS WIRE)-- 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 and technology brands, is pleased to report its financial results for the three months ended March 31, 2022 (“Q1 2022”).

Playmaker Capital Inc. Reports First Quarter 2022 Results (Graphic: Business Wire)

“We have started 2022 the way we completed 2021 - focused on execution. We continue to see strong organic growth from our underlying businesses, and we continue to grow through acquisition. In Q1, we acquired Futmarketing, and subsequent to the quarter end we acquired The Sports Drop,” said Jordan Gnat, Playmaker CEO. “We are focused on the profitability of our company and ensuring we invest in people and technology that drive efficiencies and create the necessary foundation for both sustainable organic growth and the ability to integrate new businesses into our ecosystem. We continue to see significant growth of the audiences we engage across our ecosystem. In Q1, our web properties reached a monthly high of 88M users, an increase of 55% over Q1 2021, and total user sessions in the quarter exceeded 645M, an increase of 64% over Q1 2021. We continue to see excellent engagement across our YouTube properties, generating 145M views in the quarter, a 5% increase over Q1 2021. We have built a significant multi-channel platform of assets with leadership teams that are working together to leverage each other’s strengths.”

“Our operating segments continued to drive profitable growth in Q1 2022, delivering a 37% increase in pro forma revenue compared to Q1 2021 while contributing $1.6 million of operating income and $1.7 million of Adjusted EBITDA in the quarter,” said Mike Cooke, Playmaker CFO. “We also continue to focus on strengthening our balance sheet, closing a $15.0 million credit facility during the quarter. The addition of such a significant amount of available capital, combined with $5.1M of cash on hand at quarter-end, provides us with flexibility to continue to opportunistically pursue our M&A strategy.”

FINANCIAL HIGHLIGHTS (Figures in USD)

• Revenue – Revenue was $5.8 million in Q1 2022, compared to $nil in Q1 2021.
• Operating Income – Our Digital Media and Technology Services operating segments produced combined operating income of $1.6 million in Q1 2022, compared to $nil in Q1 2021. On a consolidated basis, including our corporate segment, operating loss was $0.7 million in Q1 2022, compared to an operating loss of $0.1 million in Q1 2021.
• Pro Forma Revenue (including all acquisitions through Q1 2022) – Revenue was $5.8 million in Q1 2022, an increase of 37% from $4.2 million in Q1 2021.
• Pro Forma Adjusted EBITDA (including all acquisitions through Q1 2022) – Adjusted EBITDA was $1.7 million in Q1 2022, an increase of 16% from $1.4 million in Q1 2021.
• Cash and Cash Equivalents – Cash and cash equivalents were $5.1 million at March 31, 2022 compared to $7.1 million at December 31, 2021.

OPERATIONAL HIGHLIGHTS

• Playmaker added to its premier collection of sports media brands with the acquisition of U.S. media company, The Sports Drop. As part of the acquisition, The Sports Drop Founder, Mike Bellom, joined Playmaker’s senior leadership team as Head of Paid Media. Playmaker also acquired Futmarketing, a top digital media and marketing group in Brazil and a trusted editorial consultant to soccer platforms throughout Latin America.
• Playmaker introduced Adam Seaborn as Head of Partnerships (North America) to lead integrated sales efforts for Playmaker’s North American assets.
• Playmaker achieved record engagement metrics in Q1 2022 across its owned and operated web properties, reaching more than 88 million monthly users and generating more than 645 million sessions in the quarter, representing a 64%+ increase over Q1 2021.
• Playmaker achieved its highest rankings by Comscore in Brazil, with Futbol Sites’ properties Bolavip and Fanaticos ranking #1 and #3 respectively for the month of March.
• Successful migration of The Nation Network’s web properties, including all team sites and Daily Faceoff, to Playmaker Bench, Playmaker’s in-house monetization tech stack.
• The Morning Bark, Yardbarker’s daily email newsletter, increased its subscriber base to more than 372,000. Yardbarker also launched BarkBets, a daily sports betting focused newsletter.
• Yardbarker and Spotlight Sports Group entered into a long-term strategic partnership to provide an all-new horse racing portal on yardbarker.com. This vertical provides users access to odds, entries, analysis, and general information pertaining to horseracing across the U.S.
• Playmaker brand Cracks launched a live show offering and generated more than 145 million views on YouTube in Q1 2022.
• Playmaker properties reached more than 106 million social media followers across all major platforms including Facebook, Twitter, TikTok, Instagram, YouTube and Twitch.

CONFERENCE CALL

The Company will host a management conference call to discuss its Q1 2022 financial results on May 17, 2022 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 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 end of Q1 2022, 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

Playmaker Capital Inc. (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a premier collection of sports media brands, curated to deliver highly engaged audiences of sports fans to sports betting companies, leagues, teams and advertisers.

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

Playmaker Capital Inc.
Condensed Consolidated Interim Statements of Financial Position
(Stated in U.S. dollars)
			March 31, 2022 (Unaudited)			December 31, 2021 (Audited)
Assets
Current
Cash and cash equivalents		$	5,066,882		$	7,111,728
Accounts receivable			3,981,195			4,406,719
Income taxes receivable			99,553			45,711
Inventory			188,160			18,770
Prepaid and other current assets			459,708			377,061
Total current assets			9,795,498			11,959,989
Property and equipment			944,617			778,381
Intangible assets			48,671,392			45,808,097
Goodwill			28,422,683			28,393,097
Deferred tax asset			882,337			868,116
Other long-term assets			41,994			20,720
Total assets		$	88,758,521		$	87,828,400
Liabilities
Current
Accounts payable		$	629,244		$	567,572
Income taxes payable			99,853			81,264
Deferred revenue			142,770			188,993
Accrued expenses and other current liabilities			2,141,374			2,623,321
Current portion of lease liability			129,106			88,951
Current portion of long-term debt			-			14,365
Current deferred consideration			2,155,000			2,345,759
Current contingent consideration			14,125,376			10,475,031
Total current liabilities			19,422,723			16,385,256
Long-term debt			-			46,708
Long-term lease liability			538,416			415,057
Deferred tax liability			4,002,790			4,237,822
Deferred consideration			1,878,710			1,848,388
Contingent consideration			8,671,713			8,837,406
Total liabilities			34,514,352			31,770,637
Shareholders' Equity
Share capital			61,034,944			60,494,370
Contributed surplus			813,278			606,863
Warrant reserve			299,517			303,278
Accumulated other comprehensive (loss) income			(526,205)			(1,368,266)
Deficit			(7,377,365)			(3,978,482)
Total shareholders’ equity			54,244,169			56,057,763
Total liabilities and shareholders’ equity		$	88,758,521		$	87,828,400

Playmaker Capital Inc.
Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss
Unaudited
(Stated in U.S. dollars, except share information)
For the three months ended March 31
			2022			2021
Revenue		$	5,816,573		$	-
Cost of sales			728,969			-
Gross profit			5,087,604			-
Operating expenses
Advertising, commissions and fees			478,803			-
Web services and publishing			223,252			-
Salary and wages			2,996,461			17,826
Professional fees			475,036			82,571
General and administration			432,417			7,961
Share-based compensation			213,810			90
Depreciation and amortization			940,836			297
Total operating expenses			5,760,615			108,745
Operating income (loss)			(673,011)			(108,745)
Listing and filing fees			(5,827)			-
Transaction costs			(648,934)			(56,389)
Interest expense			(10,483)			-
Other income			7,823			-
Other expenses			(12,226)			-
Change in fair value of consideration			(1,896,772)			-
Foreign exchange gain (loss)			(137,314)			(173,971)
Net loss before taxes			(3,376,744)			(339,105)
Deferred income tax recovery			-			-
Current income tax expense			(22,139)			-
Net loss		$	(3,398,883)		$	(339,105)
Other comprehensive (loss) income:
(Loss) gain on translation			842,061			174,934
Net loss and comprehensive loss		$	(2,556,822)		$	(164,170)
Basic and diluted net loss per share		$	(0.02)		$	(0.01)
Basic and diluted weighted average number of shares			212,960,634			30,000,000

Playmaker Capital Inc.
Condensed Consolidated Interim Statements of Cash Flows
Unaudited
(Stated in U.S. dollars)
For the three months ended March 31
Operating activities			2022			2021
Net loss		$	(3,398,883)		$	(339,104)
Depreciation and amortization			940,836			297
Share-based compensation			213,810			90
Non-cash interest expense			6,543			-
Change in fair value of contingent consideration			1,896,772			-
Unrealized foreign exchange (gain) loss			137,314			155,775
Change in non-cash working capital:
Accounts receivable			425,524			(25)
Income taxes receivable			(53,842)			-
Inventory			(169,390)			-
Prepaid and other assets			(94,998)			(31,146)
Accounts payable			61,672			25
Income taxes payable			18,589			-
Deferred revenue			(46,223)			-
Accrued expenses and other current liabilities			(543,023)			(26,321)
Net cash flows used in operating activities			(605,299)			(240,409)
Investing activities
Restricted Cash – Futbol Sites Acquisition			-			(6,000,000)
Acquisition of Futmarketing			(875,000)			-
Settlement of consideration			(429,691)			-
Purchase of property and equipment			(25,117)			(3,087)
Purchase of intangibles			(44,040)			-
Net cash flows used in investing activities			(1,373,848)			(6,003,087)
Financing activities
Issuance of preferred shares			-			5,505,000
Issuance costs on preferred and common shares			-			(149,727)
Warrants exercised			26,813			-
Lease liability principal payments			(40,161)			-
Net cash flows provided by financing activities			(13,348)			5,355,273
Increase (decrease) in cash and cash equivalents			(1,992,495)			(888,223)
Foreign exchange impact			(52,351)			19,160
Cash and cash equivalents, beginning of period			7,111,728			6,631,358
Cash and cash equivalents, end of period		$	5,066,882		$	5,762,295

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220516006020/en/

MEDIA

Derek Holota – Derek@providentcomms.com | (+1) 343-422-5606

Source: Playmaker Capital Inc.

FAQ

What were Playmaker Capital's Q1 2022 revenue figures?

Playmaker Capital reported pro forma revenue of $5.8 million for Q1 2022, a 37% increase over Q1 2021.

How did Playmaker Capital's Adjusted EBITDA perform in Q1 2022?

Adjusted EBITDA for Q1 2022 was $1.7 million, representing a 16% increase compared to Q1 2021.

What acquisitions did Playmaker Capital announce in Q1 2022?

In Q1 2022, Playmaker Capital acquired Futmarketing and The Sports Drop to enhance its digital media presence.

How many users did Playmaker Capital engage in Q1 2022?

Playmaker Capital engaged a record 88 million monthly users in Q1 2022, which is a 55% increase from the previous year.

What financial strategy did Playmaker Capital pursue in Q1 2022?

The company secured a $15 million credit facility to support its growth and acquisition strategies.