A Toronto-based esports betting, legal sports betting, and iGaming site is ready to challenge the Ontario market even more coming out of the third quarter.
On Wednesday, Rivalry Corp. reported a 50% year-over-year handle increase to $105.7 million in Q3. Combining that growth with a previously-announced $14 million capital infusion and cost-cutting measures, Rivalry has lofty goals.
“We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies. Now, with our recently announced capital infusion, we will be able to go back on the offensive, while still maintaining our path to profitability.”
- Steven Salz, Rivalry CEO and Co-Founder
Online casino growth
Rivalry is geared toward Millennial and Gen Z fans of esports, a trending wagering sector of the gaming industry. The company has also grown its online casino operations, which made up half of the handle, or $50.4 million, during an “unseasonably viewership in select Q3 esports events,” the company stated among its highlights.
Rivalry’s overall revenue jumped 22% to $8.7 million in Q3, with gross profits of $4 million, up 90% from the same quarter last year.
The company, which announced a net loss decrease of 6%, also reached all-time highs in average handle per customer, average revenue per user, and record low cost of customer acquisition in an Ontario sports betting and iGaming landscape that drew a handle of over $14 million in Q3.
On pace for profitability
The third quarter reaffirmed Rivalry’s positive guidance of achieving profitability in H1 2024.
The company pointed to a new same-game parlay for esports, supporting an improved sportsbook product mix and contributing to an enhanced margin profile spurring Q3 success.
The betting handle for the nine-month period ending September 30, 2023, was $338.1 million, marking a 127% increase from the same period in 2022. Year-to-date revenue was also up 70% while gross profit rose 175%.
“It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fueled by growth capital, that is creating a significant opportunity set for Rivalry,” Salz said. “It is that combination which gives us confidence to reaffirm our first half 2024 profitability guidance.”
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