Playmaker Capital, a sports media company and its affiliates, reported record profits for the three months ending March 31, 2023.
Playmakercharacterized the “strong growth”, in Q1, as a result of the deeper engagement that the business had achieved with North American sports fans.
Jordan Gnat, the chief executive of the company, said that the growth expected in the coming year would be fueled by an intensified Playmaker integration and improved operational efficiency across the entire business.
Gnat said that efforts are being made to integrate Wedge with the scale of our audience in North America.
We see a significant organic revenue opportunity and will continue working to optimise our audience growth through our full-service monetization stack – direct sales, direct to consumer, and affiliate. While delivering the best local and relevant content to our fans when, where, and how they want it.
Significant Playmaker Q1 growth
Playmaker’s revenue in the first quarter was $15.7m, up 190.7% from $5.6m it achieved during the similar period last year.
Playmaker’s digital business accounted for $9.7m, and its affiliate business accounted for $6.0m.
The business grew 69% in Q1 2022, excluding the financial impact of the company’s acquisition of affiliate Wedge Traffic.
The business reported $5.9m in adjusted earnings before tax, depreciation, or amortization (EBITDA), an increase of 76%.
The acquisition of Wedge had a significant impact on the business’s expenses and costs. They increased to $10.9m, up from $5.6m in the previous period.
Continued profitability and EBITDA Margin Growth
Playmaker’s net profit for Q1 was $160,900, compared with the $3.4m loss reported in the previous year.
Chief Financial Officer Mike Cooke said, “We’re very happy with the revenue growth that we achieved in Q1. But even more important, profitability continues improving, with adjusted EBITDA increasing faster than revenue over the period.”
Cooke stated that improvements in efficiencies were responsible for the increased profitability of the company and EBITDA.
“As at March 31, 2023, our cash on hand is sufficient to continue to pursue both organic and non-organic growth in a strategic, focused way.”