Rivalry revenue recovers from Q4 but still down on Q1 2023 company record
TSX-listed firm manages to narrow losses as bosses point to new product launches and Rivalry Token cryptocurrency as key developments
Rivalry has posted Q1 2024 GGR of C$7.7m (£4.4m) as the esports-focused operator returned to growth compared to Q4 2023 but fell short of its earnings for the first three months of 2023.
GGR rose 20% against Q4 2023’s return of C$4m as the final three months of last year were impacted by “less favourable sportsbook outcomes”.
However, the C$7.7m figure is below Q1 2023’s GGR of C$12m, which remains a record for the Toronto-based operator.
Net revenue landed at C$4.5m, up from the C$3m reported in Q4 2023, while management pointed to a record net revenue margin of 58.5%.
Rivalry was also able to narrow its net loss to C$5.2m during the reporting period, down from C$9m in Q4 2023.
Total betting handle for the first three months of the year came in at C$94.7m, up 11% on Q4 2023 but down from the C$120.2m reported in Q1 2023.
During the quarter, Rivalry released pre-made parlays and shareable betslips, which management said had further driven customer engagement and acquisition.
On the Q1 performance, CEO Steven Salz said: “Our first quarter results saw a return to growth with sequential increases in betting handle, gross gaming revenue, and net revenue.
“We are also very encouraged by the improvement to net revenue margin experienced in the quarter, hitting an all-time record, proving our strategy is delivering results, and representing a meaningful improvement as compared to the average levels experienced throughout 2023.
“Additionally, interest in our original casino content continues to build, unlocking B2B revenue opportunities that we are keen to detail more fully in the near future,” he added.
Earlier this week, the in-house Rivalry Token cryptocurrency was unveiled as the firm looks to further delve into Web3 opportunities.
Salz said: “This represents a meaningful strategic step for Rivalry, complementing our existing approach which focuses on a generation that grew up immersed in gaming and internet culture, and now extending that reach to the crypto community.
“The Venn diagram of Gen Z, gamblers, gamers and crypto enthusiasts or crypto curious has an extremely high degree of overlap that we are uniquely positioned to access.”