Canadian sports betting and media company, Rivalry, has reported exceptional financial results for the first quarter of 2023. The company witnessed a surge in revenue, setting new records and demonstrating significant growth across its sportsbook and gaming divisions.
Record Revenue:
In Q1 2023, Rivalry recorded an impressive revenue of $12 million, marking a remarkable increase of $7.2 million, equivalent to 151%, from the $4.8 million reported in the same period in 2022. Additionally, this figure was $2.5 million higher, or 27%, compared to the Q4 2022 revenue of $9.4 million.
Unprecedented Betting Activity:
A highlight of the quarter was the betting handle, which reached an all-time high at $120.2 million. This figure reflected substantial growth, surging by $80 million, or a remarkable 199%, when compared to the Q1 2022 handle of $40.2 million. Even more impressive, it soared by $36.2 million, marking a 43% increase over the previous quarterly record of $83.9 million in Q4 2022.
Gross Profit and Net Loss:
Rivalry’s gross profit in Q1 2023 amounted to $5.4 million, a record high. This figure represented a substantial increase of $4.8 million from the Q1 2022 gross profit of $0.7 million. Comparing it with the Q4 2022 gross profit of $5 million, it was still up by $0.4 million or 9%. Notably, the company saw a significant reduction in the Q1 net loss, amounting to $3.3 million. This represented a remarkable 50% decrease from the Q1 2022 net loss of $6.6 million and marked the fifth consecutive sequential reduction in net loss.
CEO’s Perspective:
Rivalry’s co-founder and CEO, Steven Salz, expressed his enthusiasm for the company’s impressive performance. He noted that the company’s strategic position at the intersection of esports and entertainment continues to drive organic growth, resulting in their most remarkable quarterly results to date. Salz highlighted Rivalry’s content and brand strategy, which sets industry precedents for betting entertainment and enables them to acquire customers profitably. This approach creates economic breakthroughs, increases user engagement, and paves the way to profitability.
Future Focus:
Rivalry plans to continue building innovative products that enhance the betting experience for users. These products, combined with a profitable acquisition strategy, are poised to generate consistent organic momentum, further boosting operational efficiency.
Expanding into Ontario:
In March, Rivalry expanded its offerings by launching its casino product in Ontario, debuting the online casino platform Casino.exe. This addition comprised a total of 8 casino games, further strengthening the company’s presence in the Canadian market.
Rivalry’s remarkable financial performance in Q1 2023 underscores its position as a rising star in the sports betting and media industry. With record revenue and substantial growth in betting activity, the company’s future prospects appear promising, driven by its innovative approach and strategic focus on user engagement and profitability.