Rivalry revenue rockets 150% in Q1 2023
Esports-focused betting operator posts revenue of C$12m driven by growth across all its divisions
Rivalry has seen its revenue rocket 150% year on year (YoY) to C$12m (£7.2m) for Q1 2023.
This is the highest-ever revenue documented in any quarter for the sports betting and esports operator, up almost C$3m on its previous record set in Q4 2022.
This new record revenue figure was also partnered by an all-time quarterly high betting handle of C$120.2m, representing a 199% YoY increase and up 43% from the last quarter.
Rivalry also reduced its net loss by 50% YoY to C$3.3m, attributed to the firm’s continued focus on operational efficiency.
Breaking down Rivalry’s performance by segment, its sportsbook segment generated C$10.3m in revenue, an increase of 119% YoY. Gaming revenue also saw a monumental increase of 4,786% from C$33,956 to C$1.7m.
User registrations likewise soared for the operator, with the end of the quarter figure had reaching 1.5 million, up 114% YoY. Of this, millennials and Gen Z demographics accounted for 97% of Rivalry’s active users.
In terms of costs incurred by the firm, revenue was 59%, up at C$6.5m, while operating expenses increased by 25% YoY to C$9m. Main operating costs were up 80% to C$4.5m in the year’s opening quarter.
After these costs were taken into account, operating losses were C$3.6m, down from the $6.6m posted in 2022.
Reflecting on Rivalry’s Q1 results, CEO Steven Salz praised the firm’s ongoing strategy and how it will assist with further growth this year.
“Our position at the intersection of esports and entertainment continues to create operating leverage in the business and drive organic growth,” Salz explained.
“Rivalry’s content and brand strategy is setting the industry precedent for betting entertainment. This allows us to acquire customers profitably and engage them through authentic touchpoints without having to consistently deploy additional marketing and promotional spend for growth.
“It is this approach that is generating breakthrough industry economics, user engagement and charting a path to profitability that we are very bullish on,” the CEO added.
Elsewhere, the firm announced earlier this month that it had raised C$10m in strategic investment led by Pinnacle.
In its Q1 earnings report, Rivalry referenced this investment and stated that it had closed the first tranche of the private placement for gross proceeds on 5 May. This initial offering raised C$6.9m in proceeds, with 4,611,013 subordinate voting shares sold at $1.50 each.
On 23 May, the firm closed a second tranche for aggregate gross proceeds of C$382,499 by issuing 254,999 subordinate voting shares.
After accounting for finder’s fees, the operator raised a total of C$7.3m and issued some 4,866,012 subordinate voting shares. Another tranche of the placement is expected to close no later than 23 June.