Rivalry Corp., a globally regulated sports betting and media corporation, has declared notable financial growth in the first quarter of 2023. The betting handle reached a record CA$120.2 million (£71.4 million/US$88.3 million/€82.2 million), indicating a significant increase of 199% year-over-year and a 43% sequential rise from Q4 2022.
The company’s revenue exhibited substantial growth of 151% year-over-year, reaching $12 million and sequentially growing by 27%. Meanwhile, the gross profit for the same period surged by 698% year-over-year and 9% sequentially, accumulating to $5.4 million.
Driven by product and technological innovation efforts, Rivalry has seen a spike in user engagement, reinforcing its brand’s leading position in the iGaming industry, particularly targeting the next generation of fans.
Registrations have doubled year-over-year, amassing 1.5 million users, predominantly from Millennials and Gen Z, who constitute 97% of active users.
Rivalry is in a strong financial position with no debt and a robust cash position, recently bolstered by the company’s equity financing, supported by stakeholders from sports betting, technology, and payments sectors. The company is considering applying to uplist to the Toronto Stock Exchange.
The company’s first quarter 2023 highlights revealed several record-breaking achievements. With an increase of $80 million or 199% from the previous year, and a sequential rise of $36.2 million or 43% from Q4 2022, the betting handle of $120.2 million represents an all-time quarterly high.
The record-breaking gross profit of $5.4 million in Q1 2023 and a 50% reduction in net loss from Q1 2022, demonstrates a continued emphasis on operational efficiency. This notable growth in Key Performance Indicators was achieved despite a 5% year-over-year reduction in marketing expenses, highlighting the effectiveness of Rivalry’s brand strategy and the ability to profitably convert users and drive growth independent of marketing expenditure.
Rivalry’s product and tech innovations across casino and sportsbook continue to differentiate the company in a competitive market, driving user activity through a unique, engaging, and interactive online betting experience. The company had $13.1 million in cash and no debt as of March 31, 2023. The company also raised approximately $7.3 million through a non-brokered private placement subsequent to the end of the quarter.
“Our position at the intersection of esports and entertainment continues to create operating leverage in the business and drive organic growth as seen in our most impressive quarterly results to date,” said Steven Salz, Co-Founder and CEO of Rivalry. “Rivalry’s content and brand strategy is setting the industry precedent for betting entertainment, allowing us to acquire customers profitably and engage them through authentic touchpoints without having to consistently deploy additional marketing and promotional spend for growth. And it is this approach that is generating breakthrough industry economics, user engagement, and charting a path to profitability for the Company that we are very bullish on.”
“Building innovative products, which add to an overall unique and interactive betting experience on Rivalry, will remain a strategic focus in 2023,” Salz added. “The competitive advantage of engaging and fun products is increased user activity and satisfaction, and when combined with a profitable acquisition strategy, creates a flywheel effect in the business generating consistent organic momentum and enhancing our operational efficiency.”