Yesterday, theScore reported its Q2, 2015 results. The company lost $2.84-million on revenue of $3.2-million, a topline that was up 68% over the same period last year.
“Q2 saw us continue to strengthen the core foundations that power theScore’s mobile sports offerings — our established brand as a leader in mobile sports, our best-in-class product development team and our cutting-edge mobile newsroom,” said CEO John Levy. “This was also an historic quarter for us with the expansion of our product offering. The acquisition of mobile-first daily fantasy sports game Swoopt gives us a foothold in a fast-growing space that enjoys a clear fit with our existing user base, while the launch of theScore eSports established us as the first major sports media company to treat competitive video gaming as a legitimate sport with a stand-alone app.”
Goff, says that although he is not yet factoring in the potential value from theScore’s recent entry into fantasy sports, Swoopt, he believes the offering could provide upside. theScore acquired Swoopt, which offers daily fantasy sports contests for professional baseball, hockey, football, basketball and college football, in December.
The analyst says theScore is positioned smack dab in the middle of the burgeoning digital mobile advertising market.
“We attribute the improving user revenues to the increased user engagement and improving yields that will increasingly find a positive consideration for the social platform usage,” said Goff. “Management indicated that US programmatic advertising yields were higher on the quarter. We see the potential for further gains through emerging private network platforms where content suppliers are garnering premium yields,” he said.
In a research update to clients today, Goff maintained his “Buy” rating on theScore, but raised his one-year target price on the stock from $0.85 yo $0.95, implying a return of 20.3% at the time of publication.