In the second quarter of 2024, Rivalry, the Canadian sports betting and media company, released its financial results, reflecting a mixed performance amid strategic adjustments. The company reported a handle of CA$87.8 million, marking a 7% decline from the first quarter of 2024 and a significant 22% drop compared to the same period in 2023.
Gross Gaming Revenue (GGR) also experienced a downturn, standing at CA$7.4 million. This represents a 3% decrease from the previous quarter and a 12% reduction from Q2 2023. Net revenue for Rivalry was CA$4.7 million, showing a 22% decline year-on-year.
Segment
The Casino segment has proven to be a key area for Rivalry, generating 60% of the handle and contributing 24% to the GGR. Despite the overall decline in handle and revenue, the Casino segment continues to play a crucial role in the company’s financial structure.
Strategic Focus and Management Comments
Steven Salz, co-founder and CEO of Rivalry, provided insight into the company’s strategic focus and efforts to improve financial performance. Salz highlighted that Rivalry is concentrating on two main growth areas: cryptocurrency expansion through tokenization and the VIP segment.
“We have narrowed our focus primarily to two areas that are showing the highest potential for growth in our history: crypto expansion led by tokenization, and VIP’s,” said Salz. He further elaborated on the company’s strategy to manage working capital efficiently, streamline teams, and cut expenditures in areas that do not align with these priorities.
Salz also noted the company’s success in improving margins, citing record margin levels for two consecutive quarters. This margin improvement is part of Rivalry’s broader strategy to enhance profitability amid a challenging financial environment.
Crypto Expansion and VIP Focus
Rivalry has made notable strides in its crypto expansion efforts. The pre-release of the Rivalry Token has been a significant development, and early results have been encouraging. The company is leveraging the growing interest in cryptocurrency to drive future growth and attract a new segment of users.
Additionally, Rivalry is intensifying its focus on VIP customers, aiming to enhance engagement and loyalty within this high-value segment. By concentrating on these areas, Rivalry hopes to reverse the current downward trend and capitalize on emerging opportunities in the gaming and betting markets.
Rivalry’s Q2 2024 financial results reflect both challenges and strategic shifts. While the company has faced declines in handle, GGR, and net revenue, it is actively addressing these issues through targeted investments in cryptocurrency and VIP segments. The emphasis on margin improvement and strategic realignment positions Rivalry to potentially overcome current obstacles and achieve future growth.
As Rivalry continues to navigate a dynamic market landscape, its focus on innovation and strategic priorities will be crucial in driving performance and enhancing shareholder value.