Canadian sportsbook and iGaming operator Rivalry registered record revenues of C$8.7 million (US$6.42 million) for the quarter ended September 30, 2023. The revenue numbers mark an increase of C$1.6 million (US$1.18 million) or 22% from C$7.1 million (US$5.23 million) it recorded in the same period last fiscal.
Despite the record revenue growth, the company still registered a net loss of C$5.6 million (US$4.13 million) for the third quarter, a reduction of 6% from the C$6 million loss in the third quarter last year. Losses were also reduced by 12% sequentially. Gross profit for the quarter stood at C$4 million (US$2.95 million), an increase of C$1.9 million (US$1.4 million) or 90% from Q3 2022.
“We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies,” said Steven Salz, Co-Founder and CEO of Rivalry. “Now, with our recently announced capital infusion, we will be able to go back on the offensive, while still maintaining our path to profitability.”
Betting handle for Q3 2023 was C$105.7 million (US$78 million), up C$35.4 million (US$26.13 million) or 50% from the third quarter of 2022. The casino segment generated approximately half of the total betting handle (C$50.4 million or US$37.2 million).
As per the company, recent casino product launches including a custom-branded slots category, the new original game Cash & Dash, and the release of Casino.exe on iOS mobile app in Ontario have set the stage for continued growth and increased player wallet share.
For the nine-month period ended September 30, 2023, betting handle was C$338.1 million (US$249.58 million), an increase of 127% from the comparable period of 2022, while marketing spend decreased by 8%.
Revenue grew to C$29.2 million (US$21.55 million) in the first nine months of this year from C$17.2 million (US$12.69 million) in the same period of 2022. Gross profit increased 175% to C$13.2 million (US$9.74 million) from last year, while the company’s net loss for the first nine months stood at C$15.2 million (US$11.22 million), a reduction of C$3.6 million (US$2.65 million) compared to the same period in 2022.
“Years of consistent performance, flattened opex multiple quarters in a row, demonstrated triple-digit growth year-over-year across core metrics year-to-date with all-time high average handle per customer, average revenue per user, and record low cost of customer acquisition over that same period gives me high conviction in Rivalry’s future,” Salz added.
On November 15, 2023, Rivalry strengthened its balance sheet through the announcement of a private placement offering of C$14 million ($10.34 million) principal amount senior secured convertible debentures to scale several strategic verticals across marketing, product development, and geographic expansion.
“It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fueled by growth capital, that is creating a significant opportunity set for Rivalry. It is that combination which gives us confidence to reaffirm our first half 2024 profitability guidance,” the CEO concluded.
