Digital sports media company, Playmaker Capital, released its Q2 financial results, highlighting substantial growth and record-setting engagement metrics. The Toronto-based company recorded impressive results across nearly all key performance indicators but reported an operating loss of $0.7 million for the quarter.
Excellent Player Engagement Boosted Profitability
The second quarter marked a significant return on Playmaker’s prior investments, as year-to-year revenue skyrocketed, reaching $7 million. The figure is over double 2021’s $3 million Q2 results. The company’s operating income took a modest hit, dropping from $0.4 million to a net loss of $0.7 million compared to last year. This drop is no cause for alarm, as it is due to Playmaker’s substantial investments.
The main driver behind this impressive growth is the company’s record engagement metrics, showing a 40% increase in user sessions at 674 million during the quarter. Monthly user count highs reached a staggering 95 million, which also reflected on advertising. Direct sales by tier one affiliates and gambling operators increased by 50% and constituted more than half of Playmaker’s quarterly revenue.
Playmaker Continues Its Rapid Expansion
Jordan Gnat, Playmaker CEO, expressed his satisfaction with the Q2 financial results. He drew attention to the company’s new projects like the acquisition of Juanfutbol. This move paved the way for the media company’s expansion into Mexico and the US Hispanic sports markets and through a flagship content provider with over six million social network followers.
Gnat also mentioned The Nation Network (TNN)’s launch of The 90th Minute, a soccer-focused brand featuring high-profile properties like Kicked Back and Sunday League Pundits. This new venture will consolidate TNN’s soccer brands and expand its presence via podcasts, social media, and websites.
We continued to invest in the foundation of our business, integrating recently acquired companies and developing operational efficiencies and centers of excellence.
Jordan Gnat, CEO of Playmaker Capital
Loans and Temporary Losses Fuel Future Growth
Playmaker continues to focus on maintaining its momentum and is continuing its expansion efforts. The company’s substantial investments had a toll on the quarter’s adjusted EBITDA, which was down by 14%, sitting at $1.9 million compared to Q2 2021’s $2.2 million. Playmaker’s cash and cash equivalents also dropped by 50% year-to-year from $5.1 million to $2.5 million.
CEO Gnat drew attention to July’s financing deal with Beedie Capital for a $20 million convertible loan facility, which followed a similar $15 million agreement in March.
This… gives us significant flexibility to opportunistically pursue our M&A strategy – and to continue making investments to drive growth.
Jordan Gnat, CEO of Playmaker Capital
According to Gnat, the reason for Playmaker’s success lay in its disciplined approach to investment. The company’s primary strategy was to balance profit and growth so that the two did not interfere. This balanced approach appears to have succeeded, as Playmaker continues to strengthen its market position in preparation for November’s World Cup.