Rivalry smashes revenue record in Q1

Rivalry, a leading name in esports betting, has reported record-breaking revenue figures for the first quarter of its 2023 financial year, demonstrating exceptional growth in both its sportsbook and gaming divisions.

The operator achieved CA$12.0 million (£7.2 million/€8.2 million/US$8.9 million), eclipsing its prior record of CA$9.4 million achieved in the last quarter of 2022. This figure also signifies a remarkable 150.0% increase from the CA$4.8 million reported in Q1 of 2022.

This surge in revenue was accompanied by an unprecedented quarterly betting handle of CA$120.2 million. Rivalry also successfully reduced its net loss by an impressive 47.3% during the same period.

Reflecting on these outstanding results, co-founder and Chief Executive Steven Salz emphasized the effective implementation of the company’s content and brand strategy, which he believes will propel ongoing growth throughout 2023.

“Our strategic positioning at the intersection of esports and entertainment is creating operational leverage that drives organic growth,” Salz stated. “Rivalry’s content and brand strategy is establishing a new industry standard for betting entertainment. This enables us to acquire customers in a cost-effective manner while engaging them through authentic channels without the need for continual high marketing expenditures.”

“Our approach is delivering significant improvements in industry economics, user engagement, and laying the groundwork for profitability, of which we are very optimistic.”

Rivalry’s First Quarter Performance Analysis

Analyzing Rivalry’s performance for the three months ending March 31, sportsbook activities accounted for CA$10.3 million in revenue, reflecting a staggering 119.2% increase from CA$4.7 million in 2022. Meanwhile, gaming revenue skyrocketed by 4,786.4%, rising from CA$33,956 to CA$1.7 million.

The company also reported a considerable jump in user registrations, reaching a total of 1.5 million at the close of Q1, marking a 114.0% rise year-over-year. Notably, Millennial and Gen Z consumers represented an impressive 97.0% of active users.

On the financial side, the cost of revenue surged by 58.5% to CA$6.5 million, while operating expenses grew by 25.0%, reaching CA$9.0 million. The primary driver of operating costs was general and administrative expenses, which surged by 80.0% to CA$4.5 million during Q1.

This resulted in an operating loss of CA$3.6 million, a significant improvement from the CA$6.6 million loss reported in 2022. Factoring in a CA$320,360 gain from foreign exchange, the net loss narrowed to CA$3.3 million.

Rivalry also recorded a negative CA$654,836 due to exchange rate differences from translation operations, culminating in a total comprehensive loss of CA$3.9 million, a reduction of 47.3% compared to Q1 2022.

“Our commitment to developing innovative products that enhance the overall interactive betting experience on Rivalry remains a strategic priority for 2023,” Salz remarked. “The competitive edge gained through engaging and enjoyable products results in higher user activity and satisfaction.”

“Coupled with a profitable customer acquisition strategy, this model creates a productive flywheel effect, generating consistent organic momentum while enhancing our operational efficiency.”

Strategic Financing Initiatives

Rivalry also outlined its recent strategic financing initiatives aimed at expediting operational goals and facilitating strategic growth. On May 5, the company successfully closed the first tranche of a private placement, generating gross proceeds of CA$6.9 million by selling 4,611,013 subordinate voting shares at CA$1.50 each.

Subsequently, on May 23, Rivalry completed a second tranche for aggregate gross proceeds of CA$382,499, issuing an additional 254,999 subordinate voting shares. After accounting for finder’s fees, Rivalry raised a total of CA$7.3 million while issuing 4,866,012 subordinate voting shares. An additional tranche of this placement is anticipated to close no later than June 23.

In conclusion, Rivalry’s robust performance in the first quarter of 2023 reflects strategic foresight, effective market positioning, and a commitment to innovation—key factors that will undoubtedly underpin the company’s success as it navigates the competitive landscape of the ever-evolving gambling industry.