Rivalry revenue surges 60% in Q2 2022

Sports betting and esports operator Rivalry’s revenue has soared 60% year on year (YoY) to C$5.3m (£3.5m) for Q2 2022.

This figure represented the company’s highest-ever revenue in any quarter and was up 11% on the C$4.8m posted in Q1 2022.

Betting handle totalled C$38.4m for Q2 2022, increasing 98% YoY, but was down 4% on the C$40.2m in Q1 2022, a record amount for the company to date.

Gross profit amounted to C$2.1m, which was once again a record figure for the firm, representing a 206% YoY jump from the C$700,000 in Q2 2021.

Rivalry said that growth was underpinned by increased operating leverage that prioritises profitable customer unit economics.

The operator stated that it had C$27.8m in cash and no debt as of 30 June 2022.

The quarter was eventful as it commenced operations in Ontario when the market opened on 4 April 2022. Rivalry also launched in Australia in May.

Rivalry has continued its momentum in Q3 2022, reporting that betting handle reached C$23.4m in July, an all-time record for the firm, which is up 66% month over month and 162% YoY.

CEO and co-founder Steven Salz said: “We are very encouraged by our performance in Q2, putting up significant year-over-year growth across all core metrics and sequential growth on a number as well, despite what is a seasonally quiet quarter in the esports calendar.”

Salz went on to hint at what is to come in the second half of the year: “Looking ahead, we are excited about the second half of the year. With a number of impactful product releases, marketing and operational initiatives slated through the rest of the year, we are hungry to demonstrate to the market the inherent operating leverage in our model.”

Rivalry’s shares were down 3.33% to C$0.87 at the time of writing.

Salz spoke to EGR earlier this month about the significance of being awarded a licence in his home province of Ontario and the secret behind the operator’s success in esports.