Q2 2021 Score Media and Gaming Inc Earnings Call

Good afternoon, and welcome to the score fiscal year 'twenty 'twenty, One Q2 financial results conference call and webcast. At this time all lines are in a listen only mode. After the presentation. We will open up the call for questions instructions for you to queue up will be provided at that time.

Please note that the audience on today's webcast, we will have the ability to increase the size of their presentation screen by navigating to the maximized controls sound and the top right of the slides window. This call is being recorded today Tuesday April 13th 2021 at 530 Eastern daylight time, I would now like to turn the call over to you.

Your host album, Abo, Chief Financial Officer, Mr. <unk>, you may begin.

Thank you Christina Hello, and good afternoon, everyone. Thanks for joining us on today's call and webcast for the scores fiscal 'twenty 'twenty. One Q2 results. This is Alvin and the score Chief Financial Officer, and joining me on the call. Today are the score is founder and Chief Executive Officer, John <unk>.

And President and Chief operating Officer Benjy Levy.

This time, we would like to caution our listeners that this presentation contains forward looking statements. There are risks that actual results could differ materially from what is discussed and that certain material factors or assumptions are and applied and making these forward looking statements and.

Any forward looking statements contained in this presentation represent the views of management and are presented for the purposes of assessing the score shareholders and analysts and understanding and the score as financial position objectives and priorities and anticipated financial performance for looking statements may not be.

And for other purposes.

Additional information on items of note the scores and our reported results and factors and assumptions related to forward looking information are all available and our financials and MD&A perfect for Q2 fiscal 2021.

And so which were filed on SEDAR and a few moments ago and are also available on our Investor Relations page and score and media and gaming Dot Com, our CEO John Lee We will now begin the presentation.

Okay.

Thank you Alvin.

And good afternoon to everyone and.

Thank you for joining us today as we review what was a record setting second quarter, continuing the strong start to our fiscal year.

The score had a very active and productive fiscal second quarter, including quarterly record results across our gaming and media operations.

We also executed our initial public offering and listing on NASDAQ and the U S, which positions us to invest and further long term growth.

For the quarter media revenue was up 17% year over year to $8 million, representing a record for second quarter to quarter media revenue and.

In particular, returning and new advertisers were eager to get in front of our highly engaged customer base throughout the quarter in part due to the strong sports schedule.

As a result advertising sales also reached an all time second quarter record.

Handle on the score that was a record 81 $6 million, making a substantial wides of 491% year over year.

The growth and handle demonstrate that our mobile sports betting business is growing as expected as we continued to expand our footprint and penetration and the U S and further build and existing states.

Our growing mobile sports betting business and the U S also positions us very positively as we prepare for the potential legalization of single game sports Wagering and Canada.

Our second quarter operating metrics highlight the real potential of the score is differentiated model.

Combining media and gaming into a single and user experience and demonstrate that our platform will only get stronger as we deepen our bedding and content platforms.

Importantly, it's evident that our long term view that mobile is where the future lies is in fact a reality.

Mobile is the key driver of bidding behavior and data from the U S States, where mobile handle as reported underscore the fact that consumers prefer the convenience of being able to bet anywhere and at any time via our mobile App and.

And our first U S state of New Jersey mobile wagering accounted for approximately 84% of all sports book debt placement in 2019 and that figure has continued to grow in 2020 and in 2020 one.

This is a trend we are all well equipped to capitalize upon.

The score is an experienced mobile first company within and entrenched user base and we are extremely well positioned to leverage our digital platform to both acquire and engage new customers.

As I mentioned earlier at the end of fiscal second quarter, we executed a successful U S IPO raising gross proceeds.

$186.3 million U S inclusive of the full exercise of the over allotment option.

This new capital provides a score with additional resources to take advantage of the existing opportunities and sports betting and I gaming and more rapidly build out our team.

In particular, we are working toward on work. So we're working toward taking on additional control of our tech stack, which will allow us to further strengthen our products and our ecosystem as we enter new markets and expand our operations.

Strong performance on the score that continued in the second quarter with handle up 491% year over year and up 46 per cent compared to the first quarter.

As we evaluate our gaming performance, we are extremely encouraged by the continued handle growth and New Jersey.

Second quarter handled and New Jersey rose, 195% over the prior year as we further demonstrated our ability to strategically build the user base by leveraging our differentiated product and what is it growing but highly competitive market.

Overall, our gaming business has been extremely active further positioning us for future growth.

First we launched the score bat and Iowa, bringing our footprint of U S States, and which weird wildlife two for.

Second we signed and market access agreement with Caesars, which allows us to launch mobile sports betting and Illinois. This.

It is an important agreement, which gives us access to the sixth most populous U S state.

We now have five U S market access partners, which shows the gaming industry's confidence and our company our platform and our unique business model.

Third the score bet became an official betting operator of the PGA tour our agreement with the PGA Tour also positions a score to become their first official betting operator in Canada, pending and enabling legislation regulation and licensing.

Throughout the quarter and going forward, our key focus remains on enhancing our sports betting business and positioning the score debt for future growth.

And this effort is investment and technical enhancements to the score at that platform.

We believe these efforts will serve to make our differentiated user experience, even more seamless and position the score bet to take additional share.

As we plan for the future and continue to build out our business. We achieved a significant milestone at the end of fiscal second quarter by executing our U S initial public offering on NASDAQ.

The score is successful IPO confirm long term investors widespread and growing interest in the sports betting and I gaming space throughout the process. We saw significant excitement on the part of U S investment community and our company's long term prospects as well as a tremendous growth prospects of the entire industry.

Standing here today, we are in an excellent position to leverage our more than two decades of experience innovating and building best in class sports platforms to be a leader and this developing industry and see the great opportunities, we see both in the U S and in Canada.

Intimately, we will invest the IPO proceeds across a number of key priorities, including the expansion of our operations that continuous enhancement of our technology and products for us.

<unk> of additional market access opportunities and through customer acquisition and retention activities.

Score is one of the few ways for investors to invest and a pure play mobile sports betting operator with access to emerging opportunities and both the U S and Canada and the only operator with a unique and fully integrated sports media and sports betting ecosystem.

Our U S IPO better positions the company to benefit from investors' interest and the growing North American online sports betting and I gaming industry, and we believe investors will mutually benefit over time.

Before I turn the call over to Benji I wanted to touch briefly on the Canadian online sports betting and gaming opportunity.

Overall, we are very excited by the momentum.

And by the building momentum at both the federal and provincial level.

At the federal level, you'll see 2018 was introduced late last year to permit the legalization of single event sports Wagering and Canada and separate the Bill overwhelmingly passed on and second reading and the house of Commons while in March. It was unanimously approved and committee. The Bill is now back in the house of Commons for its third reading with strong cross.

<unk> support.

From the beginning the score had been and active participant engaged and the legislative process and late March I appeared before the House of Commons Committee to voice the company support for the Bill and the importance of a safe and regulated sports betting framework.

Parliament and now works towards passing much needed betting reform and Canada, We will continue collaborating with the key stakeholders throughout this process.

Simultaneously, our home province of Ontario remains on track to implement its framework to modernize its gambling sector and allow private operators to enter and the market.

We are actively working through the public consult a process to shape Ontario's regulatory framework.

We said previously that the Canadian online sports betting and gaming industry could represent a four to 5 billion U S business at maturity and.

In addition, as the leading mobile sports media brand in Canada, we are well positioned well well positioned should single game sports betting and I gaming open up on our home turf as.

As we move into the second half of our fiscal year.

And actively engaged and the ongoing legislative process, and we're working tirelessly to position our company to benefit long term.

With that I'll now pass the call over to <unk>, who will talk through some product and content initiatives.

Angie.

Thanks, John and good afternoon, everyone.

As John mentioned, we registered another record quarter across our bedding business.

We're very pleased with the progress, we're making as we broadened our footprint and increased our brand recognition and our.

Our strong activation around tent pole sporting events continued in the quarter highlighted by the Super Bowl and March Madness.

These major sports moments showcase our ability to execute integrated multichannel thematic campaigns that lead to customer acquisition engagement and increased bidding activity.

In connection with the Super Bowl, we registered our highest ever number of first time betters and increase of approximately 275% year over year with total event handle rising more than 500% over last year.

And building on that momentum we were more than ready for our first March madness, and mobile sports book Operator, the first week of the tournament, we generated our highest ever week of cash best placed.

The score bet is resonating with fans and the same authentic ways. Our media App has for years and it delivers the exceptional product experience that spans crave backed by a leading technology platform. Our product development work continues to focus on enhancing our live betting experience and further simplifying the connection between our cant.

Kent and our sports book.

Supported by a growing team of engineers and developers are product line focus and ability to uniquely harnessed the power of media and betting is already yielding results and we will continue to differentiate us away from the competition.

Turning to our media operations, we continued our momentum from last quarter with record Q2 media revenue and engagement.

Users are increasingly interacting with our media app to stay informed and entertained during a busy and a reorganized sports calendar or.

Our mobile media platform offers advertisers the ability to engage with the consistent broad audience, featuring and attractive demographics that they have been eager to reach since sports resumed last summer.

<unk> this quarter, we secured deals with returning top tier brands, including Mcdonald's Pepsico, and BMW and signed rocket mortgage NASCAR and NBA, Canada as new clients.

With the continued rise of mobile consumption amidst the fractured media landscape, our company isn't and increasingly advantageous position due to our large and loyal app audience. The score as a trusted source of news scores and personalized content that users rely on throughout the year.

Our record Q2 media engagement metrics highlight the popularity and scale of our platform with user sessions growing 8% year over year to $488 million for an average of 125 sessions per month across our base of $3 9 billion monthly active users. These strong results were achieved despite the later start to both the NBA.

And NHL regular seasons.

Looking again at the Super Bowl, our media App also shined, we generated significant engagement around the game with $2 2 million users visiting the score as the NFL section and spending an average of $10 five minutes and the App.

Super Bowl user sessions were also up approximately 15% year over year.

These metrics demonstrate our commitment to serving our audience as sports fans first which ultimately is the key driver to building authentic betting behavior and growing our uniquely integrated media and betting business.

Product development work and the quarter also included the release of a fully rebuilt media app for Android.

This rebuild focused on increasing the average performance stability and scalability.

Our esports platforms again registered impressive video views and Q2 totaling nearly $200 million.

Even with the calendar, where many esports events have yet to return we are firmly positioned as an authoritative and leading voice and the space.

For the quarter was highlighted by our broadcast of the league of legends debit and see a championship our first ever live event production.

The event generated more than $4 6 million impressions across all platforms and brought significant attention to our brand and production capabilities.

Through our E sports offering we offer brands and unique opportunity to connect with a huge and highly engaged audience.

We have continued to build out our esports sales team to take advantage of the large global opportunity and this robust industry.

Rounding out content, our social media channels continued to deliver exceptional reach and serve as a growing monetization vehicle, we've cultivated a wide social following through and innovative content strategy and our average monthly reach across Twitter, Facebook Instagram and Tic Toc was approximately $88 million and the second quarter again, making the score one of the top ranked sports media.

Net.

Advertisers are taking notice and Q2, we executed social content activations with both Bacardi and rocket mortgage this isn't an area. We will look to build on moving forward leveraging our strong content capabilities and integrated offerings and I'll now turn things over to Alvin who will talk in more detail about our financials.

Thanks for benzene.

I won't get for the financial recap of the quarter momentarily, but before doing so I want to provide some high level details of the U S. IPO since it closed after the end of the second quarter.

The IPO inclusive of the full exercise of the underwriters over allotment generated gross proceeds of $186 $3 million and U S.

We issued an aggregate of $6 9 million class a shares a U S $27 per share now and for the financial recap and the quarter total revenue for Q2 fiscal 2021 was $5 6 million with record Q2 media revenue, partially offset by negative and net gaming revenue.

And of $2 4 million media revenue and the quarter was $8 million compared to $6 8 million for the same period last year, representing a 17% year over year increase driven by strong growth and dropped and programmatic revenue gain.

<unk> handle was 80, $81 6 million and gross gaming revenue was.

Point $4 million and the second quarter, when taking into account promotional cost and fair value adjustments on unsettled debt. This resulted in negative net gaming revenue and $2 4 million for the three months ended February 28, 2021.

EBITDA loss in the quarter was $12 9 million versus an EBITDA loss of $8 6 million for the same period last year.

The increase in EBITDA loss was primarily due to additional expenses incurred in connection with the expansion of our gaming operations compared to the prior year.

From a liquidity perspective pro forma for the U S. IPO, our February 28 cash balance was $262 million.

This now concludes the formal part of our presentation Christina we will now take questions from analysts.

At this time, if you'd like to ask a question. Please press Star then the number one on your telephone.

To withdraw your question press the pound key.

Hold one moment and while we compile the Q&A roster.

And your first question comes from the line of Susan So Kumar with eight capital.

Good evening guys.

Good evening.

For the first question I had was on the on the impressive handle growth this quarter.

Obviously, it's good to see strong sequential growth and and the strong performance Nonetheless.

Can you can you touch on some of the some of the some of that from.

From a dynamics youre seeing in the state that you live and today no.

We specifically seen strength and which states are you seeing better than expected market share gains given your your.

Sure.

Unique bedding and and media model.

Thanks for that.

It's a good question and and the bottom line is we're really in the for states that we operate in.

And across all of them and.

Obviously, it is subject to regionalization, there are different communities and.

And regions within each of the states and with which we are operating and we expect to see that as we expand across the U S and hopefully into Canada, but.

One of the things that we're pretty excited about what we saw even in the mature market of New Jersey, where we've been operating the longest for us and that's you know and that's with.

Interruption of months and months of no sports activity because of because of the COVID-19 shut out but.

We've seen I think we reported just under 200% increase year over year and the context of of betting activity. So.

And we're very excited about the growth that we're seeing within each state.

And we're building this strategically and each of the states. Our approach really is no different in terms of leading with our product and and and leading with with this sort of whole ecosystem of the melding of the betting application and the media space. So.

We expect that will be sort of universal hypnos globally accepted as we roll out all across the U S and hopefully and Canada. So so so far we are very excited about the growth that we're seeing on a state by state basis.

Okay. Thanks, that's helpful.

I wanted to touch on I gaming next.

Is this still on track for free <unk>, two and and any update on the scope and and range of offerings our debt.

And that you will eventually launch and and how well and how will this be rolled out works and the within your score that mobile app.

Well I'm going to let I'm going to let Benji I talked about the gaming, but as you would expect when we implement product, it's usually going to be implemented in a seamless fashion with the with sort of the user first strike. So.

But let me turn it over to Badger to explain in the states, where we have licenses and what our plan is with respect and the introduction of Viking.

Yeah, Thanks, Jonathan and thanks to that yes. The short answer is yes, we are still on track for H two.

For introduction of our I gaming offering our plan is to offer on and integrated in and integrated manner with our with our mobile sports book.

And that will roll out first and New Jersey, where we have a market access agreement for I gaming with valleys.

And then we will look to grow our footprint from there.

You know one jurisdiction and kind of particularly exciting for us will be Ontario, where they.

And theyre looking to rollout.

Gaming and sports betting kind of to the fullest extent possible.

Okay, Okay, great. Thanks.

And last question for me is just is this more around your investment priorities now post the U S. IPO I mean, you touched on and your opening remarks.

And kind of taking more control of your technology stack can you talk a little bit about some of the specific priorities.

For for investment and technology, and and is there any potential here for any and the M&A to help you accelerate your your roadmap here.

I think go ahead and I.

And I think that look I think as John said off the top.

One of our biggest priorities is going to be accelerating the growth of our team, particularly on the technology side.

You know we have been building out a big pieces of the technology stack in house.

Are there potential opportunities to supplement that with with strategic M&A certainly.

But it would take the kind of the right opportunity to fit in the context with what we're building and.

And then the other priorities are expanding our footprint and and continuing our growth across the U S and Canada.

Okay, great. Thanks.

Pass the line.

Your next question comes from the line of Chad Beynon with Macquarie.

Hi, Good afternoon, John Benji oven and thanks for taking my question and congrats on the U S listing.

Thank you.

Wanted to ask about the the Illinois market access deal that you guys announced in the quarter, how should we think about your urgency to strike more deals and the near term, particularly for existing states and now that you're a U S listed public company does this give you I guess more M.

Oh to strike a deal similar to what you did with Penn.

To maybe compensate your partner with with <unk> with your stock because that's something that could could help you strike more deals versus some of the others who are trying to do deals just wanted to get a sense of how we should think about this going forward. Thanks.

So I'll, let you know let me start out of some general comments and I'll turn it over to bench and you can talk specifically about the Illinois situation and Chad you're absolutely right I mean.

Part of the rationale for doing for lifting in the first place was to arm ourselves.

So that we would be better equipped to two.

To participate and and activate our our our levels of engagement.

U S market.

And are more and more rapidly expanding I think.

Even before we did the listing we've always been more aggressive than most in terms of ours and thinking about how fast things are going to open up both north and south of the border on a state by state basis, and obviously and Canada as well.

And it is.

It obviously gets competitive but.

And it puts us the whole listing and having a presence on NASDAQ and and and and having the great partners that we have now.

Allows us to build this momentum and it allows us to do a great deal with Caesars in and in Illinois, and and hopefully more to come and there's.

And there's you know there was announcements today about states that are opening up I think it was.

Maryland for one and and Arizona for another I mean, this is happening a lot quicker than a lot of people felt it was going to happen. So.

We've been working very hard Benji and our teams of our access teams and and lawyers and consultants all across the U S have been engaged in this process for it.

For months and months and and now it's coming to fruition and it definitely puts us in a position.

To be able to operate in that environment and just at the outset I'll say you know we're in four states now and where.

We're hoping based on how these things are coming to fruition and our position now to be able to do these things that we'd be hoping even outside of what's going to happen and Canada to be and what the next 12 months, perhaps and double a state if not more than that and we are currently operating and and we think that's very very reasonable very practical and then.

Layer on Canada on top of that where it's at.

Turf I mean, it's a very exciting rollout over the next not too distant future and did you want to talk a little bit about the Illinois situation.

Yeah, I mean, I think just building on what John said chat and.

Our goal is to be a national operator, and so we are actively pursuing.

Market access arrangements.

And in jurisdictions across.

Across the U S.

And as the Illinois, specifically.

We're very happy with the deal we were able to reach with Caesars.

And very excited to be able to enter that market. It's the sixth biggest market and the U S.

Lots of luck.

Lots of hardcore sports fans, there we have a pretty good user base there too so.

We are you know, we're getting cracking on that and Oh go.

Going through the regulatory process straightaway.

Great Thanks and.

And then secondly, I just wanted to ask about you know theres been a lot of focus on how the new York's Bill was finalized how many platforms, how many skins and you know it's still.

And all appears to be somewhat unclear and different than what we've seen in terms of the the final product compared to other U S. States I wanted to tie this back to Canada do you have a sense of what the framework could look like could there still be some movement in terms of what the final product could look like is there any.

Any consensus in terms of the number of skin and the number of platforms.

The fee just just kind of ballpark, what what are what to expect over that over the next several months. When this was finalized. Thanks, yeah, Yeah, I can talk a bit about the sort of where things stand and Ontario in particular and.

The provincial government.

And and the regulators here and the AGC O has been actively engaged with with.

The industry really over the last 18 months and have done a phenomenal job at.

Doing this tender and organized way and.

And a very methodical way and I think.

And are really their goal is to create a robust competitive dynamic.

Online gaming industry here.

We are consumer choice is.

One of their overarching principles and.

Based on the guidance that they put out in there.

And they are consultative documents.

There, it's going to be a direct relationship between the operators and the <unk>.

And and Theyre not proposing that there would be any cap on the number of.

On the number of operators, who would be able to enter the market as long as they satisfy the criteria that the AGC always.

Setting forth and and so.

We're particularly excited by the you know, they're taking it very progressive view and approach.

With respect to how to create a.

A dynamic market for online gaming.

Great I appreciate the comments best of luck. Thanks.

Chad.

Your next question comes from the line of Ben Chaiken with Credit Suisse.

Hey, How's it going.

I think there is a proposed ban on gambling inducements in Canada is how it's being referred to I guess do you view this as a tailwind to your business as presumably it removes the promotional threat from peer to some degree.

Just curious on your thoughts navigating this and then on.

On your thoughts about the initial strategy and when the market.

Opens it up at first thanks.

I think Ben with respect to kind of the specifics.

Specific elements of what Ontario is proposing I think it's still early days and their consultative process. So.

In terms of what this will.

And what things will actually look like at the end of the day that debt.

And that's still to be determined I think for from our perspective.

It's clear that responsible.

Responsible gaming is a core tenant of ours and it's something that is being focused.

Very intently on by the regulators and Ontario, as a as a core element of the framework that they're designing so.

How that manifests itself in terms of the final regs remains to be seen but.

Obviously, that's a core commitment of ours and there is and.

In terms of.

Timelines and how we're planning to approach the market here.

This is our home turf, Ontario is.

And as home base for the score we have a tremendous user base here and more importantly than that.

We have a brand and a legacy relationship here with customers that goes back 20 years too.

Our TV business the other kids, who are watching our CIT and Tim on our television network when they work and I was going to bed. When they were 12 years older and how $25 30 years old engaging with our app.

And betting on sports and and we just can't wait to unleash the power of that when the market opens up here.

And I'll try I appreciate it that's all for me. Thanks.

Your next question comes from the line of Matthew Lee with Canaccord Genuity.

Hi, guys. Thanks for taking my question.

I wanted to talk about the win rate in the quarter I mean handle was obviously excellent, but I think <unk> was a bit below where I thought it would be can you maybe help me understand the drivers there and maybe do you sacrifice some of the profitability of betters as part of the growth and and handle.

So Matt.

And obviously, we're building this business strategically and.

And what we're excited about it obviously is the fact that.

Even though it's early days the wagering is going up dramatically.

But the bottom line is and what we said before is until you.

And it on a state by state basis until you get to a critical mass you are always going to be susceptible to.

Swings in terms of the revenue generation coming out of the wage range. So.

We are completely confident that overtime and each of the markets that we enter into that this is going to normalize.

Over time, and we're going to see the fruits of our labor in terms of generating all this all this wagering either on a state by state basis, both in and all the states that we entered into the future wise and we're going to be entering into and up here in Canada as well so.

We're very encouraged by what we're seeing and the short term and we're seeing progress towards what Youre talking about even in these early days as we move forward.

Right Okay.

And then maybe just a bigger picture question I mean, how do you guys feel about your platform against some of the larger players.

And you know, we can't use it and Canada, yet, but do you think that you offer better kind of the same offering the same.

Debt available as maybe some of the other players and if not do you expect to be able to do so and the near term.

Well again, I think it gets back to sort of our whole differentiated you know Matt approach right I mean.

Obviously, you have to have the product you have to have the market's available we're expanding and you try to you know you try to.

And related products and the markets to the to the to the to the states you're in and the provinces, you're in or or even on and indeed visualized basis, which really gets very exciting are the more and more you learn about the business and the more information you have the debate to be able to make it so easy for for your end users right to be able to to.

To serve it up to them.

But the core for US is to do it in a fashion that it really speaks to how the whole integration of the betting into the into the media App and and yes, you want to have you have to happen and we will do have and will have all the different markets that are available on the other platforms, but you know and.

We've always said, it's not good enough and our estimation just to be a betting platform. What you have to do it and take this holistic approach to it and.

Satisfy all the users demands when he's in the media app when he's in our bets action movies and a chat room and he gets the inkling that he wants to make a bet to serve it up to them very very efficiently and very seamlessly and that's something that we can do that.

Let the other guys can't do and and it even becomes more and more important.

And when you look at what percentage of the wagering is is growing with respect to and game.

And that's where.

And offerings, such as ours really shine so.

For us it is all about the product and that's why we're investing so heavily and it that's why we're hiring like crazy and quite frankly, we call ourselves and media company, but we're really a technology company and that's what.

Critical and points to us.

Yes, that's great.

And then just on the media side of things I mean.

Youre sessions number was really good but.

Monthly activity, just kind of came down a bit year over year, which surprised me because I think we have more sports going on and this quarter than we did and maybe.

Q2 'twenty.

Can you maybe elaborate on that debt.

Well I think first of all.

It's hovering around that 4 million average monthly users.

And then you're right what excites us, though is a couple of things what the engagement of those users and in that number and don't forget because of churn and theres a whole bunch of new users that come on board as well. So I think you know that it's really hard to do comparator year over year.

And because of the different niche and schedules because.

Because when sports is happening and you know even if you look at the broadcast our numbers and in terms of what their experiences and and you know and the digital landscape for continuously is growing and when you look at how we're touching our users on our other platforms as well it is also growing but.

And where were.

We're very excited about how fast people snap back to the App after months and months of nothing happening right. So.

We expect that that's going to continue that will grow over time and what are the things. We've often said before is.

You know as this as we treat this whole vegas and ecosystem and as we get more and more people becoming score betters.

A high majority of all of them.

A great proportion of whom are also media users.

As the debt.

The bedding side of our business grows and the media side of our business growth sort of this rising tide flow.

All book, So we think that over time that that's going to be helpful. On the media side too and then the only other thing I'd say is when you look at our revenue numbers being generated on the media side.

You know, we're showing record numbers and Q2 and again Thats a credit towards.

And just advertisers both on the direct side and the B and the programmatic side, knowing where the engagement is and where people are so.

R R.

And our media universe on the App is serving us very well.

Okay. That's super helpful. Thanks, guys.

Thank you.

And your last question comes from the line of David and <unk>.

And with core Mark.

Oh, Yeah, hi, So a couple of questions. Maybe just first of all in the fall up to a previous question asked can you can you comment on what states, you're specifically doing better on in terms of market share and handle so far and you know.

And the evolution of and each day and I know, it's different but and maybe you can comment on where you might be doing them and abandon them for you or elsewhere.

And just wondering if you want to try and yeah, I mean, I think David really it's.

And we're seeing good strength across the board I mean, the most recent state.

The state, where we're newest as Iowa, but I think and the three where we've been operating for.

And in the case of Colorado, and Indiana, six plus months and.

And then and New Jersey, you know over a year, albeit kind of.

Kind of Covid stilted.

We're seeing good pick up across the board and to all of those states I mean, there isn't one where you'd say oh its a.

And kind of necessarily outsized.

Okay.

I mean, you disclosed that the gaming handler for New Jersey was up 195% in Q2 I was wondering can you disclose the actual gaming handle number.

No we're not breaking out the state by state numbers at this point David.

Okay.

And then just on just on Canada. So.

I believe that so far Ontario's the only province that looks like they're going to you know a launch and gaming sports betting and the near term, but maybe I'm wrong have you seen other provinces gearing up like Ontario, and planning on launching and the near term.

I think Ontario, certainly is the furthest.

The first list out front and they've been working at it for the better part of the last 18 months.

We do know that all the provinces have eyes on this because they all are very interested and supportive of the amendment federally on the single event sports Wagering front, so whether it's in Alberta, British Columbia, Quebec, Saskatchewan.

There.

Everybody is significantly interested in kind of having this.

And this outdated law amend.

Amended so.

And what form each province is going to take how quickly they moved to implement I think those are all still open questions at this point, but we do know that.

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Several if not all of the provinces are kind of very interested in the outcome of this and they are all.

And they all have kind of Kenai is on Ontario in terms of how they are progressing with their framework and their model.

Okay.

Thanks.

And you have no further questions at this time.

Thank you everyone for joining our fiscal 2021 second quarter call. We look forward to speaking with you once again and when we reported Q3 and mid July.

Yeah.

Thanks very much.

Thanks.

Thank you and this concludes today's conference call. Thank you for joining and you may now disconnect.

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