Rivalry, a sports betting and media company, has announced impressive financial results for the second quarter of 2022. The company reported CA$5.3 million (US$4.1 million) in revenue, representing a significant 60 percent year-on-year increase. Rivalry’s robust performance is attributed to a substantial increase in handle and gross profit, showcasing the company’s strong growth trajectory.
Financial Performance:
In Q2 2022, Rivalry’s handle, which represents the total amount of wagers placed, surged by 98 percent to reach CA$38.4 million. The company’s gross profit also experienced substantial growth, reaching CA$2.1 million, a remarkable 206 percent increase. These figures demonstrate Rivalry’s ability to attract a growing customer base and generate significant returns.
Cash Position and Growth:
Rivalry boasts a healthy cash position of CA$27.8 million with no outstanding debt. This financial stability provides the company with a solid foundation for future growth and expansion. The positive momentum has continued into Q3, with Rivalry reporting a handle of CA$23.4 million for July, representing a 66 percent increase compared to the previous month. This sustained growth reflects Rivalry’s ability to capitalize on market opportunities and meet the evolving demands of its customers.
Business Milestones and Strategy:
Rivalry achieved a significant milestone in Q2 by launching its gaming operations in Ontario on April 4, coinciding with the province’s introduction of regulated online gaming. As one of the first fully registered operators of iGaming and sports betting in Ontario, Rivalry has positioned itself as a key player in the Canadian market. The company’s strategic approach, known as the “crawl, walk, run” strategy, prioritizes sustainable unit economics in new markets before scaling advertising spend. This approach ensures responsible growth and establishes a strong brand presence among consumers.
Outlook:
Steven Salz, co-founder and CEO of Rivalry, expressed his satisfaction with the company’s Q2 performance, highlighting its impressive year-over-year growth across all core metrics. Salz emphasized the significance of entering regulated markets and establishing the Rivalry brand with consumers, which is expected to drive further growth in the coming quarters. With a focus on sustainable expansion and the addition of mobile esports to its sportsbook, Rivalry is well-positioned to capitalize on the growing demand for online gaming and sports betting.
Rivalry’s strong financial results for Q2 2022 demonstrate its ability to capture market share and generate substantial revenue growth. With an expanding customer base, solid financial position, and strategic market entry, Rivalry is poised for continued success in the highly competitive sports betting and media industry. As the company continues to execute its growth strategy and meet consumer demands, it is well-positioned to emerge as a leading player in the Canadian online gaming market.