Home > Finance > Affiliate operations boost revenue at Playmaker Capital
CEO Jordan Gnat said that growth in Playmaker’s media and affiliate businesses helped to improve operations during the three months to 30 June.
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 totaled at $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 djusted 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 at $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.
Gnat said that 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.”
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