Playmaker Capital Inc. Reports Second Quarter 2022 Results Highlighted By Record Revenue and User Engagement and Continued Profitability

• Q2 2022 pro forma revenue was US $7.4 million, 14% above analyst consensus and an organic increase of 10% over Q2 2021
• Trailing twelve-month pro forma revenue was US $30.6 million, an organic increase of 34% over the previous twelve months
• Q2 2022 pro forma Adjusted EBITDA was US $1.9 million, 12% above analyst consensus and a decrease of 14% over Q2 2021
• Trailing twelve-month pro forma Adjusted EBITDA was US $9.4 million, an organic increase of 21% over the previous twelve months
• User Sessions on Playmaker web properties reached 674 million in Q2 2022, an increase of 40% over Q2 2021

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 second quarter ended June 30, 2022 (“Q2 2022”).

“Q2 was a very productive quarter for us as we continued to invest in the foundation of our business, integrating recently acquired companies, and developing operational efficiencies and centres of excellence,” said Jordan Gnat, Playmaker CEO. “We completed two acquisitions subsequent to the quarter end with the key efforts on diligence and operational integration happening prior to closing the transactions. We launched new products with BarkBets and The 90^th Minute and our new affiliate partnership with oddschecker. On the balance sheet side, we completed a financing with Beedie Capital, bringing additional institutional capital into the company. This investment provides us with the flexibility to execute on our strategies and a partner in Beedie Capital that brings unique expertise and perspective to complement our business. I have stated on many occasions that we will not profit at the expense of growth and not grow at the expense of profit. This is the disciplined approach we started with and, as demonstrated, we continue to focus on this balance.”

“Though we continue to invest in growth initiatives throughout the business, we produced $1.9 million of pro forma Adjusted EBITDA in Q2, demonstrating our balanced focus on profitability and growth,” said Mike Cooke, Playmaker CFO. “Meanwhile, at a time when capital is at a premium, we continue to strengthen our balance sheet, closing a US $20.0 million convertible loan facility in July 2022. This facility, combined with the US $15.0 million credit facility that we closed in March 2022, gives us significant flexibility to opportunistically pursue our M&A strategy – and to continue making investments to drive growth, both organically and through strategic acquisitions over time.”

FINANCIAL HIGHLIGHTS (Figures in USD)

• Revenue – Revenue was $7.0 million in Q2 2022, compared to $3.0 million in Q2 2021.
• Operating Income – Operating loss was $0.7 million in Q2 2022, compared to operating income of $0.4 million in Q2 2021.
• Pro Forma Revenue (including all acquisitions to date) – Revenue was $7.4 million in Q2 2022, an increase of 10% from $6.7 million in Q2 2021. For the six months ended June 30, 2022, revenue was $14.3 million, an increase of 17% from $12.2 million in the same period of 2021.
• Pro Forma Adjusted EBITDA (including all acquisitions to date) – Adjusted EBITDA was $1.9 million in Q2 2022, a decrease of 14% from $2.2 million in Q2 2021. For the six months ended June 30, 2022, Adjusted EBITDA was $3.6 million, a decrease of 4% from $3.7 million in the same period of 2021.
• Cash and Cash Equivalents – Cash and cash equivalents were $2.5 million at June 30, 2022 compared to $5.1 million at March 31, 2022. Subsequent to quarter-end, on July 11, 2022, the Company closed a $20 million convertible loan facility and received a $15 million initial advance through that facility.

OPERATIONAL HIGHLIGHTS

• According to Comscore data from June 2022, Playmaker now ranks as the fourth largest digital sports media group across the Americas, up from the sixth ranking across the same region as of December 2021.¹
• Playmaker achieved record engagement metrics in Q2 2022 across its owned and operated web properties, reaching a monthly high of more than 95 million users and generating 674 million sessions in the quarter, representing a 27% and a 40% increase, respectively, over Q2 2021.
• Playmaker and Beedie Investments Ltd. (“Beedie Capital”) announced a US $20 million convertible loan facility. The proceeds from the convertible loan facility provide Playmaker the flexibility to continue to execute on its growth strategy, namely acquiring profitable digital media assets and focusing on organic growth opportunities for its portfolio of brands.
• Playmaker acquired U.S.-based, soccer-focused media property, World Soccer Talk, to grow its footprint in the North American soccer market. Through its web property, mobile app, newsletter, social channels and podcast, World Soccer Talk is a respected destination for soccer news and an authority for information regarding “where-to-stream” live soccer matches.
• Playmaker acquired Juanfutbol to accelerate its push into the Mexican and U.S. Hispanic sports markets. Juanfutbol provides Playmaker an expertise in branded content and sponsored campaigns as well as significant reach across numerous social media platforms.
• The Nation Network (“TNN”) launched The 90^th Minute, a soccer-focused brand with two flagship properties, Kicked Back and Sunday League Pundits. The 90^th Minute will serve as the parent brand for TNN’s soccer properties and will house a collection of podcasts, websites, and social media channels.
• Direct sales from tier one advertisers and sports betting operators continues to be an area of focus and growth for Playmaker. Direct sales for Playmaker’s owned and operated platform media businesses increased by 50% in Q2 2022 over Q2 2021, with direct sales accounting for more than 50% of total revenue in the quarter.
• Yardbarker Media announced a strategic partnership with technology and sports betting content provider, oddschecker, to launch a sports betting vertical on yardbarker.com. The sports betting hub delivers fans a deeper betting content experience and includes actionable information such as promotions, free bets, odds comparisons, predictions and more.

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1</sup> Comscore Media Metrix® - Sports – June 2022 – Multi Platform – Desktop 6+ and Total Mobile 18+ - Total Visits – Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States

CONFERENCE CALL

The Company will host a management conference call to discuss its Q2 2022 financial results on August 16, 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 date of this press release, 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 CAPITAL INC.

Playmaker (TSX-V: PMKR; OTC: PMKRF) is a digital sports media company that acquires and integrates premier fan-centric media brands, curated to deliver highly engaged audiences of sports fans to tier one advertisers, online sports betting operators, and sports federations and leagues. Leveraging its in-house technology stack, Bench, and with a 360 degree view of sports fans, Playmaker delivers authentic digital content experiences for sports fans and best-in-class results for its partners across the Americas.

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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