Rivalry hails record Q1 2022 as revenue rockets 149%
Toronto-based sportsbook reports 273% rise in betting handle as operations buoyed by increased operating leverage
Rivalry has reported record growth in its revenue and sports betting handle for the first quarter of 2022, with both key metrics rising by triple-digits year-on-year (YoY), the largest rise in the firm’s history.
Revenue for the period grew to C$4.8m (£2.9m) during Q1, a YoY increase of 149% and up a whopping 122% from the previous quarter.
In tandem with this growth, Rivalry’s sports betting handle also rocketed during Q1 2022, jumping 273% YoY to C$40.2m, an increase of 62% on a quarter-on-quarter basis.
Rivalry attributed these twin increases to increased operating leverage that “prioritizes profitable customer unit economics”, something which has helped the firm to a healthy cash position in which it carries no debts.
Company gross profits rose 26% YoY from C$0.1m in Q1 2021 to C$0.7m in 2022, up 71% sequentially from C$0.4m in Q4 2021.
Rivalry has confirmed a slight quarter-on-quarter decrease in its net cash position, falling from C$35.5m in Q4 2021 to C$30.1m in the first quarter of 2022.
In February, Rivalry received a license to operate a sportsbook from Australia’s Northern Territory Racing Commission, a permit which allows the firm to operate across Australia.
Rivalry later followed this up in March with the addition of a mobile esports betting lines to its sportsbook app.
Rivalry CEO and co-founder Steven Salz welcomed the results as a testament to the “consistency” that the firm has delivered over the last two years, typified by triple-digit year-over-year growth in every quarter.
“The strength we saw during the first quarter is evidence of strong momentum in the business,” Salz explained.
“We expect to continue delivering considerable year-over-year growth throughout 2022.
“On a sequential basis as it pertains to betting handle, as we have said in the past, the second and fourth quarters have typically been slower periods in the esports calendar, with the first and third being stronger.
“We expect the seasonality to become less pronounced over time as we grow traditional sports and casino as a percentage of our betting handle.
“I’m very encouraged by the trends we’re seeing in the business and the performance of our team as we continue to execute on this generational opportunity. I’ve never been more confident,” Salz added.