Rivalry Reports Q3 Loss but Sees Increases in Betting Handle and Revenue
Rivalry is a fully regulated sports betting and media company. Focusing on esports and Millennial and Gen Z consumers, the company has built Rivalry into the most engaged esports betting brand globally. Rivalry offers betting on all major esports, traditional sports, and casino. The company has developed a proprietary interactive gaming platform called Casino.exe and its own original casino game, Rushlane, a world first in the category of Massively Multiplayer Online Gambling Games (MMOGG’s).
Esports bookmaker Rivalry has revealed its financial results for Q3 2023, showcasing a promising uptick in betting handle, revenue, and gross profit year-to-year. Despite these gains, the company still experienced a net loss of CAD $5.6m (~£3.2m), a 6% reduction from Q3 2022.
According to Rivalry’s financial report, the Canada-based sportsbook generated CAD $8.7m (~£5m) in total revenue during the third quarter, marking a notable 22% increase compared to the same period last year. Gross profit also saw a striking 90% surge, reaching CAD $4.0m (~£2.4m). Meanwhile, the company’s betting handle grew 50%, increasing from CAD $70.3m (~£40.8m) in Q3 2022 to CAD $105.7m (~£62.3m) in Q3 this year.
Rivalry attributed approximately half of its increased betting handle to its Casino segment. In a press release, the company expressed optimism about recent casino product launches, stating that they “set the stage for continued growth and increased player wallet share.” The sportsbook also noted its strongest customer KPIs (key performance indicators) on a year-to-date basis in the company’s history.
In addition to its financial report, Rivalry announced plans for a virtual investor day on January 17th, 2024. This event follows the company’s recently secured investment of CAD $14M (~£8.1m), which is expected to support Rivalry’s pursuit of profitability and growth.
Beyond financial figures, the esports bookmaker has undergone numerous other developments, including launching an ad campaign with Brazilian content creator Baiano and introducing an esports betting mobile app in Ontario.
Rivalry’s Co-Founder and CEO, Steven Salz, commented on the Q3 2023 results, stating: “We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies.”
He continued, “Now, with our recently announced capital infusion, we will be able to go back on the offensive, while still maintaining our path to profitability. It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fuelled 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.”
Despite its Q3 net loss, Rivalry remains undaunted and determined to achieve profitability in the first half of 2024. Bolstered by recent investments, product launches, and strong customer KPIs, the esports bookmaker is poised to thrive as it continues to expand.