Pro forma revenue was $12.6m at Playmaker during the second quarter. Compared to the pro forma revenue for Q2 2022, this was a rise of 51.8%.
Like-for-like revenue at Playmaker was up 88.7% year-on-year in Q2 to $12.6m (£9.9m/€11.5m), as its net loss reached over $1.2m.
“During the quarter, our ecosystem of media and affiliate businesses refined internal processes, expanded syndication networks, enhanced video production and monetisation capabilities and extended strategic partnerships with tier-one advertisers and sports betting operators,” said Gnat.
Increased cost of sales lowers gross profit
Cost of sales for the quarter hit $2.2m, a $1.8m increase year-on-year. Playmaker noted that direct sales accounted for 54% of its core media advertising sales.
Direct sales revenue from Playmaker’s Futbol Sites grew 53.0% year-on-year.
The cost of sales brought the gross profit to $10.3m, up by 63.8% yearly.
Operating expenses totalled $11.2m, a rise of 64.7%. Almost half of this – $5.2m – went on salary and wages alone. Expenses for advertising, commissions and fees were $2.5m, while general and administration generated the third highest cost of $475,576.
The total operating loss came to $854,865, an increase of 76.4%.
Adjusted EBITDA – including Playmaker’s corporate segment –- was $2.2m, up by 37.5%.
Mike Cooke, Playmaker CEO, said that despite the quieter sporting season, Playmaker continued to deliver “strong top-line growth”.
He added that Playmaker’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was a particular highlight for the quarter, alongside improved cash flow.
“Meanwhile, our consistent focus on profitability is reflected in continued growth in adjusted EBITDA – and in the fact that we have generated $6.9m of year-to-date cash flow from operating activities.”
The cash flow total marked an improvement of £6.1m year-on-year.
Discontinued operations brings loss to over $1m
Further costs brought the pre-tax loss to $408,000. The most expensive of these further costs was interest expense, at $627,155.
However, these costs were all but wiped out by $1.3m in foreign exchange gain, which had improved significantly from the $139,514 loss in Q2 2022.
Playmaker paid $77.7m in tax for the quarter. Net loss from continuing operations was $330,252. After incorporating net loss from discontinued operations, at $934,105, the total net loss for the quarter was $1.2m This was a further loss of $151,512 year-on-year.
Half-year revenue rockets 135%
Revenue for the six months to 30 June was $28.3m, a significant increase of 135.0%.
Cost of sales for the period grew by $3.5m to $4.2m, bringing the gross profit to $24.0m.
Looking at expenses, salary and wages incurred the highest costs, at $9.4m. Advertising, commissions and fees generated $5.8m costs for the six months. Depreciation and amortisation saw the third-highest costs, at $3.5m.
Total operating expenses were $22.0m. This brought the operating income to $1.9m. As seen in Q2, foreign exchange gain at $1.5m largely made up for further operating costs. These saw the income before taxes total $1.2m.
Following taxes of $1.1m, the income from continuing operations was $152,664. Net loss from discontinued operations at $1.2m brought the total net loss for the six months to $1.1m, signalling an improvement of $3.4m.
According to Gnat Playmaker is well placed to continue its growth for the remainder of the year.
“Entering the sports-heavy Q3 and Q4 periods, Playmaker is better positioned than ever to drive value for fans, customers and shareholders,” he said.