Sports junkies who have downloaded Score Media Inc.‘s smartphone applications have become key players in the company’s aggressive multi-platform growth strategy, CEO John Levy said Thursday.
The Toronto-based sports media company just reported its most profitable quarter ever, earning $1.1 million as revenue grew nearly 10%, Levy said in an interview after the company’s annual general meeting Thursday.
“As the economy starts to snap back, because we were able to hang in there with very positive results last year, we’re moving forward very aggressively," Levy said.
“Relative to some of the other media companies who struggled through a very difficult economic time… we had a situation where, basically, we showed increased revenues in 2009."
Revenue totalled $11.4 million for the quarter ended Nov. 30, up from $10.5 million a year ago, when profit totalled $248,000.
Over fiscal 2009, revenues rose by $2.5 million to $38.9 million, thanks to increases in TV sales as well as web and mobile revenues. However, Score Media reported a net loss of $1.5 million for the year, due in part to investments in high-definition programming.
While Score’s media rivals played defence against declining advertising sales during the economic downturn, Levy said his company concentrated on new media platforms that “redirect advertisers into looking for new ways to connect with audiences."
ScoreMobile for BlackBerry has been downloaded on about 1.8 million BlackBerrys since its launch seven months ago and is the most downloaded sports application on the smartphone.
“The broadcasting industry has got to adapt to the new way people are going to consume sports, and news, and information, and entertainment. Anything that was is about to change and is changing," Levy said.
He added that the potential for growth is “exponentially greater" in its new media platforms than in traditional content delivery.
“As new [technologies] open up, I think advertisers are going to be very receptive to joining back into the fray."
The company expects a 40% to 50% year-over-year growth in revenues from its new media platforms, such as its smartphone applications that let users check real-time scores, as well as standings and TV clips.
He added that adapting content and advertising strategies to new platforms is so integral to 21st century media operations that it will determine whether an outlet exists in the next five years.
Levy also attributed the company’s stability during the recession to a “core passion" in sports enthusiasts, who are empowered by new technologies. He added that mobile and social media will become a bigger part of their lives in the coming years.
“You don’t have to take stuff from people who think they know about sports–you are sports," he said. “So this whole new way of doing things is allowing more people to communicate with each other and allowing them to get more and more excited."
