Rivalry surfs “generational tidal wave” to record Q3 revenue – esports betting

Rivalry, the esports media and betting operator, has reported a remarkable revenue achievement of CAD$3.7 million (£2.2 million/€2.6 million/$2.9 million) for the quarter ending September 30, 2021.

The handle through Rivalry.gg, its Isle of Man-licensed esports betting portal, reached CAD$23.2 million in Q3, reflecting an impressive 141.0% year-over-year increase from CAD$9.6 million in Q3 2020.

After accounting for player payouts, the revenue surged from just CAD$474,833 in Q3 2020 to CAD$3.7 million this past quarter.

This substantial growth brings the total revenue for 2021 to CAD$8.9 million, marking a staggering 617.5% increase compared to the same period in 2020.

“The third quarter has yielded an all-time record performance for us, fueled by our unwavering commitment to establishing ourselves as the premier next-generation sports betting brand globally,” stated Steven Salz, co-founder and CEO of Rivalry.

“We find ourselves at the forefront of a generational shift that is revolutionizing consumer products across various sectors, including sports betting,” he added.

“With our market-leading brand equity, innovative product development strategies, multiple new gambling licenses in the pipeline, and a team of unparalleled talent, I am confident that Rivalry will continue to demonstrate to our shareholders our capacity to define this new generational paradigm in sports betting.”

On the expenditure side, revenue-related costs amounted to CAD$3.1 million—a year-on-year increase of CAD$2.8 million—resulting in a gross profit of CAD$573,266 for the quarter.

However, this growth was accompanied by a significant rise in operating expenses, which surged by 177.5% to CAD$4.8 million. Consequently, the business reported an operating loss of CAD$4.2 million.

Despite this, foreign exchange gains of CAD$2.0 million provided some relief, leading to a net loss of CAD$2.1 million for Q3, an increase of 66.8% from the previous year.

Since the close of the quarter, Rivalry has set new records, reporting that total amounts wagered in October reached CAD$12.8 million—the highest monthly total to date. This month also marked its stock market debut on the TSX Venture Exchange and the launch of Rushlane, a new real-money gaming title that versatilely redefines the genre of ‘massively multiplayer online gambling games.’ The company is also actively pursuing entry into Ontario’s newly regulated betting and iGaming market, with licenses in the application process.

“Having completed our direct listing on the TSX Venture Exchange shortly after this record quarter, bolstering our balance sheet with additional capital and no debt, alongside an unprecedented performance in October, we believe we are well-positioned for a strong 2022 as we transition into the esports off-season,” Salz concluded.