Playmaker Capital Inc. Reports First Quarter 2022 Results Highlighted by Continued Organic Growth and Profitability

• Q1 2022 pro forma revenue was U.S. $5.8 million, an organic increase of 37% over Q1 2021
• Trailing twelve-month pro forma revenue was U.S. $25.4 million, an organic increase of 78% over the previous twelve months
• Q1 2022 pro forma Adjusted EBITDA was U.S. $1.7 million, an organic increase of 16% over Q1 2021
• Trailing twelve-month pro forma Adjusted EBITDA was U.S. $9.5 million, an organic increase of 80% over the previous twelve months

Playmaker Capital Inc. (TSX-V: PMKR) (“the Company” or “Playmaker”), the digital sports media company that delivers authentic content experiences through its portfolio of sports media and technology brands, is pleased to report its financial results for the three months ended March 31, 2022 (“Q1 2022”).

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Playmaker Capital Inc. Reports First Quarter 2022 Results (Graphic: Business Wire)

“We have started 2022 the way we completed 2021 - focused on execution. We continue to see strong organic growth from our underlying businesses, and we continue to grow through acquisition. In Q1, we acquired Futmarketing, and subsequent to the quarter end we acquired The Sports Drop,” said Jordan Gnat, Playmaker CEO. “We are focused on the profitability of our company and ensuring we invest in people and technology that drive efficiencies and create the necessary foundation for both sustainable organic growth and the ability to integrate new businesses into our ecosystem. We continue to see significant growth of the audiences we engage across our ecosystem. In Q1, our web properties reached a monthly high of 88M users, an increase of 55% over Q1 2021, and total user sessions in the quarter exceeded 645M, an increase of 64% over Q1 2021. We continue to see excellent engagement across our YouTube properties, generating 145M views in the quarter, a 5% increase over Q1 2021. We have built a significant multi-channel platform of assets with leadership teams that are working together to leverage each other’s strengths.”

“Our operating segments continued to drive profitable growth in Q1 2022, delivering a 37% increase in pro forma revenue compared to Q1 2021 while contributing $1.6 million of operating income and $1.7 million of Adjusted EBITDA in the quarter,” said Mike Cooke, Playmaker CFO. “We also continue to focus on strengthening our balance sheet, closing a $15.0 million credit facility during the quarter. The addition of such a significant amount of available capital, combined with $5.1M of cash on hand at quarter-end, provides us with flexibility to continue to opportunistically pursue our M&A strategy.”

FINANCIAL HIGHLIGHTS (Figures in USD)

• Revenue – Revenue was $5.8 million in Q1 2022, compared to $nil in Q1 2021.
• Operating Income – Our Digital Media and Technology Services operating segments produced combined operating income of $1.6 million in Q1 2022, compared to $nil in Q1 2021. On a consolidated basis, including our corporate segment, operating loss was $0.7 million in Q1 2022, compared to an operating loss of $0.1 million in Q1 2021.
• Pro Forma Revenue (including all acquisitions through Q1 2022) – Revenue was $5.8 million in Q1 2022, an increase of 37% from $4.2 million in Q1 2021.
• Pro Forma Adjusted EBITDA (including all acquisitions through Q1 2022) – Adjusted EBITDA was $1.7 million in Q1 2022, an increase of 16% from $1.4 million in Q1 2021.
• Cash and Cash Equivalents – Cash and cash equivalents were $5.1 million at March 31, 2022 compared to $7.1 million at December 31, 2021.

OPERATIONAL HIGHLIGHTS

• Playmaker added to its premier collection of sports media brands with the acquisition of U.S. media company, The Sports Drop. As part of the acquisition, The Sports Drop Founder, Mike Bellom, joined Playmaker’s senior leadership team as Head of Paid Media. Playmaker also acquired Futmarketing, a top digital media and marketing group in Brazil and a trusted editorial consultant to soccer platforms throughout Latin America.
• Playmaker introduced Adam Seaborn as Head of Partnerships (North America) to lead integrated sales efforts for Playmaker’s North American assets.
• Playmaker achieved record engagement metrics in Q1 2022 across its owned and operated web properties, reaching more than 88 million monthly users and generating more than 645 million sessions in the quarter, representing a 64%+ increase over Q1 2021.
• Playmaker achieved its highest rankings by Comscore in Brazil, with Futbol Sites’ properties Bolavip and Fanaticos ranking #1 and #3 respectively for the month of March.
• Successful migration of The Nation Network’s web properties, including all team sites and Daily Faceoff, to Playmaker Bench, Playmaker’s in-house monetization tech stack.
• The Morning Bark, Yardbarker’s daily email newsletter, increased its subscriber base to more than 372,000. Yardbarker also launched BarkBets, a daily sports betting focused newsletter.
• Yardbarker and Spotlight Sports Group entered into a long-term strategic partnership to provide an all-new horse racing portal on yardbarker.com. This vertical provides users access to odds, entries, analysis, and general information pertaining to horseracing across the U.S.
• Playmaker brand Cracks launched a live show offering and generated more than 145 million views on YouTube in Q1 2022.
• Playmaker properties reached more than 106 million social media followers across all major platforms including Facebook, Twitter, TikTok, Instagram, YouTube and Twitch.

CONFERENCE CALL

The Company will host a management conference call to discuss its Q1 2022 financial results on May 17, 2022 at 10:00 a.m. (Eastern Time). Hosting the call will be Jordan Gnat, Chief Executive Officer; Jake Cassaday, Chief Operating Officer; and Mike Cooke, Chief Financial Officer.

To participate in the conference call, please dial in using one of the following numbers approximately five minutes prior to commencement and ask to join the Playmaker call:

Dial-In Number (Toll Free): 1-844-707-6933

Dial-In Number (International): 1-412-317-5796

A replay of the Conference Call will be made available at playmaker.fans/investors.

To sign up for Playmaker Investor Alerts, visit: PMKR Investor Alerts.

TSX VENTURE EXCHANGE DISCLAIMER

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-IFRS MEASURES

Some of the information presented in this press release includes non-IFRS financial measures, including, “EBITDA”, “Adjusted EBITDA”, “working capital”, and metrics that are presented on a pro forma basis. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.

“EBITDA” is earnings before interest, taxes, depreciation and amortization.

“Adjusted EBITDA” is earnings of the Company’s operating subsidiaries before interest, taxes, depreciation and amortization, excluding the impact of head office costs and any one-time costs.

“Working capital” is the Company’s current assets minus its current liabilities.

“Pro forma” is an adjustment to incorporate the results of any acquisitions made through the end of Q1 2022, assuming each acquisition occurred on the first day of the period being presented.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Playmaker’s current expectations regarding future events. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Playmaker’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions. Playmaker undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT PLAYMAKER

Playmaker Capital Inc. (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that lives at the intersection of sports, betting, media and technology. Playmaker is building a premier collection of sports media brands, curated to deliver highly engaged audiences of sports fans to sports betting companies, leagues, teams and advertisers.

Playmaker reports in U.S. dollars, except where noted otherwise, and in accordance with International Financial Reporting Standards (“IFRS”).

For more information, visit: http://www.playmaker.fans or contact Playmaker Chief Executive Officer Jordan Gnat via email jgnat@playmaker.fans | T: (416) 815-4993

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