Jul
14

Score Media Reports Continued Growth in Revenue and EBITDA in Q3

TORONTO, July 14th, 2011 – Score Media Inc. (TSX: SCR) today announced its financial results for the third quarter ended May 31, 2011:

· Revenue for the quarter ended May 31, 2011 increased by $1.2 million to $13.2 million compared to $12.0 million in the quarter ended May 31, 2010

· EBITDA for the quarter ended May 31, 2011 increased by $0.3 million to $2.2 million compared to $1.9 million in the quarter ended May 31, 2010

· Net income for the quarter ended May 31, 2011 was $0.7 million compared to the net income of $0.6 million in the quarter ended May 31, 2010

“Q3 was another strong quarter of growth for Score Media," says John Levy, Chairman & CEO, Score Media Inc. "Our core television operations continue to perform very well. In addition, with the rapid organic growth of ScoreMobile and our acquisition of SportsTap, we are making significant strides in the expansion of our digital media business, particularly in the United States."

· On May 12th, 2011, the Company acquired SportsTap, a US based mobile sports application, to reinforce the Company’s position as a definitive market leader in smartphone sports apps. The combined monthly audience of ScoreMobile and SportsTap ranks 3rd behind Sports Applications ESPN and Yahoo!, ahead of competitors FOX and CBS according to comScore’s MobiLens™ May 2011[1] ranking of mobile sports application audiences in the United States.

· theScore Fighting Series hosted Mississauga’s first mixed martial arts event on June 10th, 2011. The card took place at The Hershey Centre and the main event pitted top Canadian prospect Jordan Mein against Dream Welterweight Champion Marius Zaromskis.

· The Company and Gillette announced that Gillette DRAFTED: The Search for Canada’s Next Sportscaster will be returning for Season 3. This season will be bigger and better than ever, filled with exciting new challenges and special guests. Just like previous winners Brent Furtney and Paul Brothers, the Season 3 winner will be crowned with a one-year contract as the Company’s newest sportscaster contributing to theScore Television Network, theScore.com, ScoreMobile and theScore Satellite Radio, plus a one-year spokesperson contract with Gillette.

· The Company and World Wrestling Entertainment (“WWE”) expanded their partnership with a multi-year agreement that will bring more high-energy WWE content than ever before to fans across Canada. The unprecedented deal builds on the Company’s and WWE’s already successful, exclusive television relationship to include online, mobile and VOD rights. In addition, the Company and WWE will work together to bring new original WWE content to Canadians across all platforms.

About Score Media Inc.

Score Media Inc. is a media company committed to delivering interactive and authentic sports entertainment. The Company’s primary asset, theScore Television Network, is a national specialty television service providing sports news, information, highlights and live event programming in more than 6.8 million homes across Canada. The Company’s digital media assets include theScore.com, theScore iPad Edition and the industry leading mobile sports applications ScoreMobile, ScoreMobile FC and SportsTap which reach over three million unique users per month. Score Media also operates theScore Satellite Radio which is available across North America on SiriusXM. Growing from a team of 60 in 1997 to over 270 employees in 2011, Score Media is a revolutionizing interactive media company.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes", "plans", "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

FISCAL YEAR RESULTS

The following tables reconcile net income to EBITDA:

Three months ended Three months ended

May 31, 2011 May 31, 2010

(000′s) (000′s)

Net income for the period $ 748 $ 568

Add back:

Depreciation and amortization 1,198 1,115

Interest expense, net 139 146

Gain on sale of investment – (18)

Investment loss 21 -

Income tax expense 129 105

EBITDA $ 2,235 $ 1,916

Nine months ended Nine months ended May 31, 2011 May 31, 2010

(000′s) (000′s)

Net income for the period $ 1,795 $ 1,393

Add back:

Depreciation and amortization 3,314 3,164

Interest expense, net 376 449

Gain on sale of investment – (18)

Investment income (4) -

Income tax expense 469 1,189

EBITDA $ 5,950 $ 6,177

The following selected quarterly financial data of the Corporation relates to the eight quarters ended May 31, 2011.

Quarterly Results	Revenue	EBITDA	Net income (loss)	Income (loss) per share – basic and diluted
	($000′s)	($000’s)	($000’s)	($)
May 31, 2011	13,162	2,235	748	0.01
February 28, 2011	11,052	1,071	207	0.00
November 30, 2010	11,863	2,644	839	0.01
August 31, 2010	10,523	1,442	1,100	0.01
May 31, 2010	11,986	1,916	568	0.01
February 28, 2010	9,958	980	(239)	0.00
November 30, 2009	11,371	3,281	1,065	0.01
August 31, 2009	8,909	677	(676)	(0.01)

The Company’s revenues have historically reflected a seasonality trend, with the third quarter (ending May 31^st) being the strongest, followed by the first quarter (ending November 30^th), the fourth quarter (ending August 31^st), and finally the second quarter (ending February 28^th). This seasonality reflects general trends for sports media advertising, which in turn reflects the schedules (particularly the playoffs) of the major North American sports leagues.

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