Press Releases
Rivalry Reports 192% Growth in Handle and 60% Growth in Revenue for Q2 2023, Projects Profitability in H1 2024
Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), an internationally regulated sports betting and media company, today announced its financial results for the three- and six-month periods ended June 30, 2023. Rivalry has also provided revenue guidance that the Company anticipates reaching profitability in the first half of next year. All dollar figures are quoted in Canadian dollars.
“In Q2 we delivered a nearly three-fold increase in handle year-over-year,” said Steven Salz, Co-Founder and CEO of Rivalry. “Increased marketing sophistication and enhancements to our core product have led to operational improvements, increased player wallet share, and a material year-over-year reduction in cost of customer acquisition, positioning us well in the coming quarters. The growing strength in these underlying fundamentals continues to validate Rivalry’s global brand leadership in esports betting, and more broadly, in delivering a world class online gambling experience for the next generation of fans.”
“Our position among young Millennial and Gen Z customers represents one of our greatest competitive advantages, but has also presented unique learnings regarding betting behaviors. Generally we experience higher margin volatility within the sportsbook among this demographic, which impacted revenue this quarter,” Salz added. “That said, challenges like this come with our position at the bleeding edge of a demographic shift in online gambling, and it has also allowed Rivalry to learn more than other operators about what is needed to succeed among this coveted cohort. In the immediate term we have been tuning our operational initiatives to address normalizing margin and seeing early results. And to contextualize the upside potential of this work, at consistent industry average margins Rivalry would have been profitable in Q1 and Q2 this year against the betting handle we generated. With these ongoing adjustments being made based on our learnings, alongside the general benefits scaling handle through growth provides to margin, we expect to reduce volatility, positively impacting bottom-line results, and propelling us to profitability in the first half of next year.”
Second Quarter 2023 Highlights
- Betting handle for the three-month period ended June 30, 2023 was $112.2 million, an increase of $73.8 million or 192% from $38.4 million in Q2 2022, while reducing marketing spend 6% year-over-year.
- Casino has helped offset historical esports seasonality slowdown in Q2, contributing toward revenue diversity and growth, adding $57.5 million in handle during the second quarter.
- Revenue was $8.5 million in Q2 2023, a record result for a second quarter, representing an increase of $3.2 million or 60% from $5.3 million of revenue in Q2 2022.
- Gross profit was $3.8 million in Q2 2023, an increase of $1.8 million or 86% from $2.1 million of gross profit in Q2 2022.
- Net loss was $6.3 million for Q2 2023, a 1% increase from the net loss of $6.2 million in Q2 2022. A select number of low probability esports and sports outcomes, alongside unique behavioral betting habits from Gen Z users, caused increased margin volatility and negatively impacted revenue, which combined with several one-time expenses expanded the Company’s net loss.
- Adjusting for non-recurring items in the Company’s operational expenses over the last four quarters, Rivalry is pleased to note that its operational expenses have remained nearly flat, while simultaneously delivering triple digit year-over-year growth in betting handle every quarter. It is this clear operating leverage trend, combined with concerted efforts to increasingly stabilize margin at scale, that has led the Company to provide its H1/24 profitability guidance.
- The Company has continued to broaden its product offering in recent months, including the launch of its mobile app in Ontario and more recently, an industry-first same-game parlay product for esports, structural sportsbook hold rate and customer experience improvements.
- The Company had $14.0 million of cash and no debt as at June 30, 2023.²
Guidance
- The Company is providing guidance as it projects to reach profitability in the first half of 2024. This projection is based on several factors, including an expectation of consistent year-over-year revenue growth, slower increases in costs due to operating leverage and disciplined management of expenses, and ongoing product innovation that strengthens the Rivalry brand and leads to increased betting activity and lower cost of customer acquisition.
“We are keen to share a number of additional product releases coming in Q3, beginning with Same Game Combos, our own proprietary version of same-game parlays for esports, which we released just last week,” Salz added. “This feature, and others arriving in the third quarter, strengthens our position at the edge of technical and product innovation, and more broadly, our ability to continue delivering a market-leading betting experience catered to young Millennial and Gen Z consumers. We have barely scratched the surface of the feature set on our deep product roadmap, which we are confident will enable us to win this global generational opportunity in betting.”
Press Releases
ELA Games Announces New Slot Game – Big Wave Delight
ELA Games, an innovative slot provider in the iGaming industry, is thrilled to announce the release of its latest slot machine game, Big Wave Delight. This new game features an advanced design, original mechanics, and a unique “Bonus Purchase” feature, setting a new standard in the gaming industry.
“Dive into the ultimate Hawaiian surf adventure with Big Wave Delight,” says Mike Cini, Business Owner of ELA Games. “Our latest slot machine offers players a thrilling gaming experience with every spin. The unique ‘Bonus Purchase’ feature and the ‘Wild Wave Respin’ feature, where every Wild landing triggers a respin and summons a massive surfing board as a Wild symbol on the reel, are sure to keep players engaged and entertained.”
Players can also hit the waves with Free Spins, scoring 10 thrilling spins with random multipliers (up to 10x) on each whirl. With up to 3 Wild Surfboards on every spin, players can expect epic wins!
The ELA Games team has just returned from SIGMA Americas in Sao Paulo, which took place from 22-24 April. The team is now preparing for the CasinoBeats Summit 2024 in Malta, where Mike Cini will be participating in a discussion panel titled “Navigating niche – mainstream opinion on alternative games“ on 22nd May.
The post ELA Games Announces New Slot Game – Big Wave Delight appeared first on European Gaming Industry News.
AFA
The Argentine Football Association and Kaizen Gaming announce Betano Liga Profesional de Fútbol
Betano becomes title sponsor and exclusive betting partner of Liga Profesional de Fútbol, introducing Torneo Betano and Copa Betano
Kaizen Gaming, the leading global GameTech operator, and AFA, The Argentine Football Association, are pleased to announce a new partnership that sees the premium brand Betano become the title sponsor and exclusive betting partner of Liga Profesional de Fútbol.
The new partnership commenced this past weekend, at the season premiere of ‘Torneo de la liga profesional’ which has been renamed to ‘Torneo Betano’. The sponsorship also includes the ‘Copa de la Liga Profesional’, which will be known as ‘Copa Betano’ from next season.
The new deal comes just a few months after the launch of Betano in Argentina. Alongside Brasileirão Betano, Kaizen Gaming now holds the naming rights to the two biggest domestic football competitions in South America. This new partnership also comes shortly after Betano’s sponsorship announcements of both CONMEBOL Copa America 2024 and the UEFA EURO 2024.
Claudio Tapia, President of AFA, highlighted: “The Liga Profesional de Fútbol is, without a doubt, one of the most important and popular sports competitions in Argentina. It is one of the most important assets of Argentine football and we always try to bring it closer to the fans and attract the interest of world-class companies through it. This agreement with BETANO strengthens our vision and confirms, once again, the massive reach of Argentine football. We thank BETANO for the trust in our ability to create valuable experiences and we commit to carry out an ambitious brand plan with professionalism. We welcome BETANO as the Naming Sponsor of the Liga Profesional de Futbol”.
Julio Iglesias, Chief Commercial Officer, Kaizen Gaming said: “From the legendary ‘Superclásico’ showdown to its clubs’ record-breaking 25 Copa Libertadores titles and the national team’s World Cup glory in Qatar, Argentina is never short of exciting footballing moments. Its league’s long and established history, and recognition among the top ten globally, also make it a launchpad for many of tomorrow’s most talented stars. Our new partnership with the AFA reinforces our growing dedication to the Argentinian football community, offering its passionate fans unrivalled entertainment through safe and responsible gaming experiences”.
Endorphina
PGS 2024: Endorphina invites iGaming enthusiasts to participate in its Dia de Los Muertos party!
The slot provider Endorphina just announced its Dia de Los Muertos-themed party, which will be linked to this year’s Peru Gaming Show, La Eterna Fiesta de Endorphina. The party will be held at the Hidden Experimental Bar in the Miraflores area on June 13th, starting from 19:00. Inviting all iGaming enthusiasts, this event will provide the ideal ambiance for connecting with compatible individuals in the industry.
During La Eterna Fiesta de Endorphina, attendees will be encouraged to show off their dance moves on the floor, grooving to the beats of Endorphina’s Latino DJ who will be present for the event. Delicious bites and refreshing brews will also be included, creating the easy-going atmosphere that Dia de Los Muertos stands for.
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