The third-quarter revenue of Playmaker, the sports media company, reached $4.8 million. This is a massive improvement from the same period in 2020, when it did not record revenue at all. The main contributor towards the Q3 revenue of Playmaker this year are the acquisitions that the company had in the recent period.
Playmakers’ Gross Profit Reached $4.5 Million
Some of the most notable acquisitions of Playmaker include Two-Up Agency, Yardbarker and Futbol Sites. The company even partnered with Genius Sports as the exclusive reseller of Yardbarker. Thanks to this deal, Genius Sports now has the right to resell the marketing solutions of Yardbarker and this move is expected to provide a lot of profit for both Yardbarker and Playmaker in the upcoming period.
The pro-forma revenue of Playmaker was increased by 109% from 2020 as it reached $5.6 million. The sales costs reached $306,169, meaning that the gross profit of the company tallied at $4.5 million. Operating expenses for Q3 were also decreased, as they were 42.6% lower compared to 2020 and reached $3.5 million.
Playmakers’ biggest operating expense was salary, which reached $1.7 million. In the same period in 2020, this expense was $2.9 million, which is yet another decrease. Commission and advertising costs reached $913,589, professional fees reached $200,165, the share-based compensation was $212,837, and finally, the fees for web services and publishing were $181,272.
In Q3 of 2020, Playmaker didn’t have any operating income, but that changed in Q3 of 2021 as it reached $1 million. Moreover, listing fees were $84,162, which is a 95.6% decrease from 2020, interest expenses were decreased by 90.3% and reached $11,552 and $15,379 worth of other expenses and transaction costs were lowered from $581,080 in 2020 to $353,053 in 2021. The pre-tax income of Playmaker was $893,307, which is a massive improvement from the 2020 loss of $544,699.
The year-to-date pre-tax losses were $565,239, which is an increase from the $164,012 loss in 2020. However, the net income of the company in Q3 of 2021 reached $893,307. In 2020, the company had a $29,340 net loss.
Playmaker Completed A Few Lucrative Deals
In Q3, Playmaker launched a new sports wagering content vertical, which was backed by Jeff Gross, a well-known investor. This development occurred in September. Not only that, but it also acquired Yardbarker, a digital media company, for a price of $24 million.
The CEO and founder of Playmaker, Jordan Gnat, said that the company is excited to share these results from Q3 and keep going strong after reporting decent Q2 earnings in August. He added that the roll-up strategy that the company executed with the purchase of Two-Up and Yardbarker is starting to show good results. Now, there’s a massive momentum in the growth engine’s three levels – synergies, organic and acquisition. The good news here is that Playmaker will continue putting a lot of effort into maximizing all three levels.
For Playmaker, this quarter was the first full quarter of trading on Toronto’s TSX Venture Exchange (TSXV).