Canada
Rivalry Announces Record Fourth Quarter, Year-End 2022, and All-Time High Quarterly Revenue In Preliminary Q1 2023 Results
Rivalry Corp., an internationally regulated sports betting and media company, today announced its financial results for the three and 12-month periods ended December 31, 2022. The Company also announced preliminary results for the three-month period ended March 31, 2023. All dollar figures are quoted in Canadian dollars.
“Our market strategy and operational excellence continues to build upon consecutive record-setting quarters, driving a strong finish to the year and a robust Q1, while simultaneously demonstrating sequential narrowing losses on our path to profitability,” said Steven Salz, Co-Founder and CEO of Rivalry. “Underpinning our growth is significant brand loyalty among the Millennial and Gen Z audience and true product innovation in online betting, enabling every marketing dollar to go further, enhancing retention, and creating a distinctly unique platform. Rivalry continues to be economically rewarded for taking an inventive approach to the betting experience and tailoring it for a demographic with unique consumption habits.”
Full-Year 2022 Financial Highlights
- Betting handle was $232.8 million in 2022, an increase of 198% compared to $78.2 million in 2021.
- Revenue was a record $26.6 million in 2022, an increase of 140% from $11.0 million in 2021.
- Gross profit was $9.8 million in 2022, an increase of $7.6 million or 349% from $2.2 million in 2021.
- Net loss for the year was $31.1 million, compared to a net loss of $24.3 million in 2021. The 2022 net loss includes $8.2 million of share-based compensation expense, a non-cash item, compared to $10.5 million of share-based compensation expense in 2021.
- The Company had $16.4 million of cash and no debt as at December 31, 2022.2
Fourth Quarter 2022 Financial Highlights
- Betting handle was $83.9 million in Q4 2022, a year-over-year increase of 237% compared to $24.9 million in Q4 2021, and up 19% sequentially from the previous record quarterly handle of $70.3 million in Q3 2022.
- Revenue was $9.4 million in Q4 2022, a year-over-year increase of 338% from $2.2 million in Q4 2021, and represented the Company’s highest-ever revenue up to that point. Revenue was up 32% sequentially from $7.1 million in Q3 2022.
- Sportsbook revenue of $7.1 million in Q4 2022 was $1.0 million higher than in Q3 2022, driven by a very strong month in October. Gaming revenue of $2.3 million was up by $1.2 million or 119% over Q3 2022, as the Company began offering a wider set of casino games on its Casino.exe platform.
- Gross profit was $5.0 million in Q4 2022, a year-over-year increase of $4.6 million from $0.4 million in Q4 2021, and up 139% sequentially from $2.1 million in Q3 2022.
- Net loss for Q4 2022 was $12.3 million. The net loss included $6.4 million of share-based compensation, a non-cash expense that is not expected to recur in future periods, as well as non-recurring spending of $1.1 million. Absent those non-recurring items, the Q4 2022 adjusted net loss was $4.9 million3, in line with a trend of narrowing losses over the past four quarters.
First Quarter 2023 Preliminary Results4
- Betting handle for the three-month period ended March 31, 2023 was $120.2 million, an increase of $80.0 million or 199% from $40.2 million in Q1 2022. Betting handle increased by $36.2 million or 43% from the previous quarterly record of $83.9 million in Q4 2022.
- Revenue for Q1 2023 was $12.0 million, an increase of $7.2 million or 151% from $4.8 million in Q1 2022, and up $2.5 million or 27% over Q4 2022 revenue of $9.4 million.
- Gross profit was $5.4 million in Q1 2023, an increase of $4.8 million from $0.7 million of gross profit in Q1 2022, and up $0.4 million or 9% from Q4 2022 gross profit of $5.0 million.
- These results were achieved with a 10% reduction in marketing spend YoY.
- Net loss was $3.5 million for Q1 2023, compared to a net loss of $6.6 million in Q1 2022.
Operational Highlights
- Rivalry obtained licences in its first two fully regulated markets, commencing gaming operations in Ontario on April 4, 2022 and in Australia on May 9, 2022.
- The Company added mobile esports to its sportsbook in March 2022, enabling customers to wager on a variety of competitive esports played on mobile devices.
- The Company entered the casino segment with its first third-party game in Q3 2022 and launched its proprietary platform Casino.exe in the fourth quarter with several additional games.
- Customer registrations increased to approximately 1.5 million by the end of Q1 2023.
- Rivalry’s creator partner network and owned media properties reached a total of 85 million followers, deepening reach, acquisition, and engagement among core target audience.
- Company brand strategy helped maintain market-leading position among next generation of bettors, with Millennial and Gen Z consumers accounting for 97% of active users in 2022.
- Esports betting continues to drive significant growth, representing nearly 90% of sportsbook handle in 2022.
- The Company expanded its casino offering in January 2023 with eight new titles including live dealer and table games, and debuted Casino.exe in its home market of Ontario in March 2023.
- On April 26, 2023, Rivalry announced a private placement for gross proceeds of up to $10 million (the “Private Placement”) with participation from key sports betting, technology, and payments stakeholders, signaling a vote of confidence in the Company’s user economics and ability to execute within this emerging vertical. The Private Placement is expected to close in one or more tranches commencing on or about May 5, 2023.
Outlook
“We have reached an inflection point in the business where the economic return of our strategy and unique position at the intersection of esports and betting has outlined a clear path to profitability,” Salz added. “We are well-positioned to scale efficiently throughout the year, with a collection of near and long-term initiatives that will contribute to our disruptive product and brand.”
Initiatives the Company expects to drive continued growth in 2023 include:
- Expanding our esports offering to deepen our core product, attract new customers, and establish the most comprehensive product globally.
- Continued evolution of our interactive Casino.exe platform and release of additional proprietary and third-party games that cater to our core demographic and further establish a betting experience unique to Rivalry.
- Continued product development, including new betting markets and proprietary platform features, to meet shifting consumption habits of Millennial and Gen Z consumers.
- Launch of a mobile app in our regulated markets to increase accessibility of our product and player acquisition.
- Geographic expansion to increase our addressable market and customer base.
- Expanded brand execution through premium content, creator partner programming, and community activations to enhance customer engagement and retention, solidifying Rivalry’s leadership position among next generation consumers.
- Continuing to grow our investor base through proactive capital markets outreach.
Stats Perform, the global leader in sports AI, data and technology, has announced an official data partnership with the Northern Super League (NSL). The partnership will allow world-leading Opta data to be collected live from every NSL league game for the next three years.
Beginning this month, the Northern Super League (NSL) establishes a new era in Canadian sport as the country’s first professional domestic women’s soccer league — an ambitious and transformative initiative co-founded by former Canadian international and Olympic medallist Diana Matheson. Its inaugural season kicks off on April 16 and will feature six teams who have assembled multinational player rosters with extensive club and international experience, including 100-cap Canadian internationals Desiree Scott and Quinn.
Once the action begins, detailed data from every on-ball event, including advanced AI-powered Opta Analytics metrics such as Expected Goals (xG) and Expected Assists (xA), will be captured and distributed via feeds and Stats Perform products, including OptaAI Studio. This will enable various broadcasters, publishers and rights holders to generate stories and insights throughout the NSL season and provide them straight to the league’s fans in real time.
As part of the agreement, the NSL’s League Office and every NSL club will also have access to Opta Search, part of OptaAI Studio. This will allow their content creators to leverage all Opta data collected during the NSL season in the creation of data-led stories on the stand-out performers, and will help them generate key talking points for publication on official league and club platforms. Opta Search will also empower the NSL’s media team to create a range of data visualizations, including player shot maps and touch maps, to visually illustrate the impact of different players’ on-field performances.
Christina Litz, NSL President, said: “We are thrilled to have Stats Perform on board as our official data partner. When we talk about detailed performance data in soccer, Opta is the gold standard, so we are delighted to have it powering each of our official digital channels. As the season progresses, we want to put the spotlight on all the on-field heroes who emerge and having access to world-class data will help us tell their stories and inspire a new generation of Canadian soccer fans.”
Steve Xeller, Chief Revenue Officer at Stats Perform, said: “Stats Perform has been a huge supporter of expansion leagues around the world, so we are very pleased to be partnering with NSL in the lead-up to their first domestic campaign. Seeing a fully professional women’s soccer league launch in Canada is an incredibly exciting development for the sport in North America and we see considerable potential in working proactively with the League’s Head Office to help the competition grow, using the power of AI and data-led storytelling to build fan communities across the continent.”
With the Ottawa Senators securing a playoff spot in the NHL, ToonieBet will be there every step of the way, engaging fans with exclusive giveaways, premium entertainment, and a casino experience that mirrors the team’s energy and excitement.
The Ottawa Senators and Tooniebet, an online casino for players across Ontario, announced a partnership that will make Tooniebet the NHL team’s Official Online Casino Partner.
Tooniebet, which launched in 2024 is part of Soft2Bet – one of the world’s fastest growing iGaming turnkey solutions providers with iGaming brands around the world with a portfolio of 19 global licenses, including Ontario.
Additional highlights of the Ottawa Senators and TonnieBet partnership will include:
- In-Arena & Broadcast Branding: Digitally enhanced dashboards for home and away games
- In-rink board signage for home games
- Virtual slot signage for various games
- Digital inventory throughout the Ottawa Senators site on NHL.com
- Direct Fan Engagement: Social contests and promotions hosted on Senators’ digital platforms
- Television Broadcast Branding: Digitally enhanced rink boards for home and away games
- In-arena rink board signage for home games
Martin Ballard, VP Corporate Partnerships, Ottawa Senators stated: “We are thrilled to welcome ToonieBet as an official partner of the Ottawa Senators. Cooperating with a brand that shares our commitment to providing fans with an exceptional and trusted experience is incredibly exciting. Together, we look forward to delivering memorable moments and engaging our passionate fanbase in new and innovative ways.”
Oksana Tsyhankova, Chief Marketing Officer at Soft2Bet, commented: “Partnering Soft2Bet’s ToonieBet brand with the Ottawa Senators is a significant milestone that reinforces our strong brand presence in Ontario. In a short period, we have achieved impressive performance and retention results, with a primary focus on localised, engaging experiences for Canadian players, which makes ToonieBet truly set itself apart.”
By tapping into the Senators’ digital platforms and in-arena presence, ToonieBet will stay close to the action and connect with fans in real, engaging ways while continuing to offer a top-quality online casino experience.
ToonieBet offers a fast, localised online casino experience for players in Ottawa and across Ontario. Through this partnership, fans will have the chance to win Senators merchandise and tickets while ToonieBet grows its presence in a competitive Ontario market. With in-arena branding, regional broadcast coverage, and digital promotions, ToonieBet will be highly visible to the team’s loyal supporters.
PENN Entertainment announced that it has launched theScore Casino, a new stand-alone iCasino app in Ontario. The dedicated online casino experience leverages the popular theScore brand, which has been a mainstay in the Ontario market for decades. Now available on Android, iOS, and desktop, customers can login using their existing theScore Bet credentials, allowing for a seamless experience across online gaming platforms.
theScore Casino operates on the same cutting-edge proprietary technology platform as PENN’s online Hollywood Casino, which launched as a standalone product in the US in December. The product was recently ranked by Eilers & Krejcik as the #2 overall iCasino product in the US.
theScore Casino, also available within theScore Bet app, offers a variety of online slots, table games, and live dealer content, including original titles from PENN Game Studios, the company’s in-house game development studio. theScore Casino also includes bespoke live dealer tables and exclusive games such as Blue Jays Blackjack, an original title leveraging theScore Bet’s partnership with the Toronto Blue Jays.
“We’re excited to introduce our dedicated iCasino product in Ontario under the well-known and trusted theScore brand. We’ve built a strong online gaming foothold in the Ontario market and are primed to deliver an even better casino experience with our proven stand-alone app. Our customer-friendly platform features more than 1200 games, dozens of original titles and intuitive game play that distinguishes our product and positions us for even greater success,” said Aaron LaBerge, Chief Technology Officer and Head of Interactive at PENN Entertainment.
-
Canada7 days agoSoft2Bet’s ToonieBet Partners with the Ottawa Senators as Official Online Casino Partner
-
Compliance Updates7 days agoMGCB cracks down on 13 illegal offshore gambling websites targeting state residents
-
Latest News7 days agoPrizePicks Renews Partnership with Atlanta Braves
-
Latest News7 days agoNetwork Gaming partners with Better Collective to launch pioneering gaming ecosystem
-
Latest News6 days agoSOFTSWISS Ignites Brazil with ‘Race Like a Legend’ Experience
-
Latest News6 days agoSOFTSWISS and Rubens Barrichello Extend Strategic Collaboration in Latin America
-
Compliance Updates6 days agoMGCB Opens Investigations into Unlicensed Sports Prediction Markets
-
Latest News6 days agoSCCG Becomes Sponsor of SFT Combat