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Rivalry Announces Record Revenue of $12 Million in First Quarter 2023, All-Time High Betting Handle, Gross Profit

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Rivary at the Canadian Gaming Summit 2023

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-month period ended March 31, 2023, and closing of the second tranche of its previously announced strategic financing. All dollar figures are quoted in Canadian dollars.

“Our position at the intersection of esports and entertainment continues to create operating leverage in the business and drive organic growth as seen in our most impressive quarterly results to date,” said Steven Salz, Co-Founder and CEO of Rivalry. “Rivalry’s content and brand strategy is setting the industry precedent for betting entertainment, allowing us to acquire customers profitably and engage them through authentic touchpoints without having to consistently deploy additional marketing and promotional spend for growth. And it is this approach that is generating breakthrough industry economics, user engagement, and charting a path to profitability for the Company that we are very bullish on.”

First Quarter 2023 Highlights

  • Betting handle for the three-month period ended March 31, 2023 was $120.2 million, representing an all-time high in any quarter for the Company. Betting handle increased year-over year by $80.0 million or 199% from $40.2 million in Q1 2022, and sequentially 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, the Company’s highest-ever revenue in any quarter. Revenue increased by $7.2 million or 151% from $4.8 million in Q1 2022, and by $2.5 million or 27% over Q4 2022 revenue of $9.4 million.
  • Gross profit was $5.4 million in Q1 2023, a record high for the Company representing 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.
  • Net loss was $3.3 million for Q1 2023, a 50% reduction from the net loss of $6.6 million in Q1 2022, and the fifth consecutive sequential decrease in net loss, highlighting a continued focus on operational efficiency.
  • Material Key Performance Indicators growth was achieved despite a 5% year-over-year reduction in marketing expenses, demonstrating the effectiveness of the Company’s brand strategy and its ability to convert users profitably and drive growth independent of marketing spend.
  • User registrations reached 1.5 million at the end of Q1, up 114% year-over-year, with Millennial and Gen Z consumers representing 97% of active users.
  • Product and tech innovation efforts across casino and sportsbook continue to distinguish Rivalry in competitive market and drive user activity through original, engaging, and interactive online betting experience.
  • Rivalry’s creator partners and owned media properties reached a total of 85 million followers, deepening organic acquisition strategy among core target audience and ability to activate customers during tentpole esports events through authentic touchpoints.
  • The Company had $13.1 million of cash and no debt as at March 31, 2023.2 Subsequent to the end of the quarter, the Company raised a total of approximately $7.3 million through a non-brokered private placement announced on April 26, 2023 (the “Private Placement”).

“Building innovative products, which add to an overall unique and interactive betting experience on Rivalry, will remain a strategic focus in 2023,” Salz added. “The competitive advantage of engaging and fun products is increased user activity and satisfaction, and when combined with a profitable acquisition strategy, creates a flywheel effect in the business generating consistent organic momentum and enhancing our operational efficiency.”

Previously Announced Strategic Financing

Subsequent to the end of the first quarter, Rivalry announced a strategic financing that will enable the Company to accelerate its operational objectives and pursue strategic growth opportunities. Led by sports betting, technology, and payments stakeholders, the financing represents a validation of the Company’s unique market strategy and success among the Gen Z and Millennial demographic.

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On May 5, 2023, the Company closed a first tranche of the private placement for gross proceeds of $6,916,519.50 through the issuance of 4,611,013 subordinate voting shares in the capital of the Company (“Subordinate Voting Shares”) at a price of $1.50 per Subordinate Voting Share. On May 23, 2023, the Company closed a second tranche of the Private Placement for aggregate gross proceeds of $382,498.50 through the issuance of 254,999 Subordinate Voting Shares. The Company paid finder’s fees in the amount of $19,775 in connection with the closing of the second tranche of the Private Placement. In connection with the Private Placement, the Company has issued an aggregate of 4,866,012 Subordinate Voting Shares for gross proceeds of $7,299,018. The Company expects to close an additional tranche of the Private Placement no later than June 23, 2023. All of the Subordinate Voting Shares issued in connection with the Private Placement are subject to a four-month and one day statutory hold period from the date of issuance. The Company expects to use the proceeds from the Private Placement to accelerate operational objectives and pursue strategic growth opportunities.

The Subordinate Voting Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referenced in this press release, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

A director of the Company subscribed for 33,333 Subordinate Voting Shares in the Private Placement and such subscription constitutes a related party transaction within the meaning of applicable Canadian securities laws. This subscription was exempt from the formal valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction was less than 25% of the Company’s market capitalization. A material change report in respect of the related party transaction could not be filed earlier than 21 days prior to the closing of the Private Placement due to the limited time between the commitment by the director to purchase the subject Subordinate Voting Shares and the closing of the Private Placement.

Investor Conference Call

Management will host a conference call at 10:00 a.m. EDT on Wednesday, May 24, 2023 to discuss the Company’s first quarter 2023 financial results.

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Dial-in: 888-886-7786 (toll free) or (+1) 416-764-8658 (local or international calls)
Webcast: A live webcast can be accessed from the Events section of the Company’s website at www. rivalrycorp .com.

A replay of the webcast will be archived on the Company’s website for one year.

Rivalry’s financial statements and management discussion and analysis for the three months ended March 31, 2023 are available on SEDAR at www. sedar. com, and on the Company’s website at www. rivalrycorp .com.

Latest News

A Decade in iGaming: From Newcomer to a CMO

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Wow, time flies! Can’t believe it’s been ten years since stepping into the exhilarating world of online gambling – a field that initially seemed like a short-term stint quickly turned into a new-found passion.

Moving to Malta, and eventually finding a home in Tallinn, I’ve had the privilege to watch the highs and lows as well as the many progressions and transformations. Today, I am proud to form part of the Mr. Gamble team that is ambitiously expanding into new markets, and pushing the boundaries.

From Customer Support to CMO

My journey in iGaming kicked off in Customer Support at Betsson – a leap from my telecom sales management role back in Finland. While this move puzzled my family and friends alike, it was a necessary step. Over the months and years, I worked my way up through various roles including Affiliate Coordinator, Affiliate Manager and Head of Affiliates, learning the various intricate parts of the industry, while at the same time adapting to new technological changes.

One thing is for sure, the iGaming industry is a fast-paced one, and each role has helped me to thrive and adapt to the various changes. Flexibility is key when working in this industry.

Venturing into Entrepreneurship: My Own Affiliate Business

Following many years of corporate experience, I took the leap to start up my own affiliate business with the aim of creating my own business from scratch. Handling everything from SEO and content strategy to fostering brand partnerships and growth strategies gave me an overall view of the affiliate industry’s many complexities. This entrepreneurial journey instilled insight and resilience, especially in terms of the value of the diverse skill sets found within a team.

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By 2023, I joined Mr. Gamble as CMO, bringing my own entrepreneurial experience into this company’s growth strategy. Drawing on my background in SEO, content management and brand development and alongside a knowledgeable team, we have successfully strengthened Mr. Gamble’s presence in established markets, while also setting our sites on new markets.

New Markets and New Possibilities

Since the online gambling industry is continually evolving and expanding, it also brings with it a surge in growth when it comes to new and emerging markets. While we have made huge strides in launching Mr. Gambe USA, we are also eyeing promising regions in Asia, Latin America and Africa, where digital adoption and regulations are evolving creating new opportunities.

As we continue to solidify our presence in the US, these emerging markets represent the next frontier.

An Ever-Changing and Evolving Gambling Industry

Over the past decade, the online gambling industry has quickly evolved from a somewhat fragmented field to a high-powered professional space. Conferences and expos, once informal gatherings have become hubs for talent.

Events such as SiGMA, SBC, iGB, NEXT.io and Hiphter Events today celebrate the progression of iGaming, while highlighting the various advances in technology and market inclusivity.

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The shift toward hybrid work in recent years has also paved the way for industry shakeups. While digital operations are convenient, the importance of face-to-face meetings and connections remains. In an industry highly reliant and built on personal relationships, meeting in person strengthens partnerships and opens doors to new opportunities.

A Bright Future for Mr. Gamble

As CMO of Mr. Gamble, I along with the team are committed to expanding our brand’s influence, not only in traditional markets, but also in new and emerging ones. iGaming is constantly evolving and our strategies must evolve too, adapting and driving on the windy road to success. This entails adapting to changes in technology, user behaviour and experience, and most importantly navigating regulatory landscapes.

Of course, Google’s frequent algorithm updates keep us our our toes, pushing us to refine our approach to stay competitive and ever more relent.

Reflecting on the last 10 years, I am energised and optimistic for the future. With a talented team and untapped markets in tow, Mr. Gamble is well-prepared for substantial growth and impact. Here is to the journey ahead and to everyone – mentors, peers, and friends who have been part of this rewarding path. The next decade holds great potential, and I look more than forward to what is yet to come.

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Latest News

MAJOR LEAGUE BASEBALL SELECTS SPORTRADAR TO TRANSFORM PLAYER TALENT SCOUTING FOR ALL 30 CLUBS

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MAJOR LEAGUE BASEBALL SELECTS SPORTRADAR TO TRANSFORM PLAYER TALENT SCOUTING FOR ALL 30 CLUBS

 

Sportradar today announced a multiyear agreement with Major League Baseball (MLB) to offer unparalleled sports performance analysis of amateur baseball prospects, through its Synergy Coaching and Scouting solution, to the league and its 30 Clubs.  This new partnership will revolutionize player talent scouting through Sportradar’s advanced, proprietary technology and highlights Sportradar’s commitment to delivering innovative and game-changing solutions to the league.

Under the agreement, MLB and its 30 Clubs will gain access to an unprecedented depth of player analysis and insights with event coverage expanding significantly, from 3,300 to more than 20,000 games – an over 600% increase. This includes college, international, professional partner leagues and leading amateur leagues, such as the MLB Draft League, the Appalachian League and MLB Develops events, and, for the first time, top high school events.

The Synergy Coaching and Scouting solution is uniquely positioned to address the player evaluation needs of MLB as it leverages Sportradar’s expertise ingesting and transforming millions of data points from video into detailed metrics, actionable insights and dynamic visualizations. This, combined with Sportradar’s AI-powered sports performance technology, enables Synergy to provide unparalleled, in-depth analysis of every player, play and game situation, and equips MLB and Club scouts with the information and insights they need to streamline the evaluation process, guide draft decisions and support the development of future MLB players.

“Sportradar’s cutting-edge technology, alongside our reputation as a trusted partner to leading US sports leagues, is driving the transformation of sports performance analysis,” said Eduard Blonk, Chief Commercial Officer, Sportradar. “Through Synergy we are pleased that we are expanding our relationship with MLB, equipping them with the deep data and insights they need to identify the next generation of players. We are eager to continue bringing innovative solutions to MLB.”

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“We are excited to expand our relationship with Sportradar and ensure equal access to the Synergy video and data services for all 30 MLB Clubs. This platform has become a key resource for Clubs in the domestic and international scouting process and we look forward to continuing our work with Sportradar in the coming years,” said John D’Angelo, MLB’s Sr. Vice President of Amateur and Medical Operations.

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Financial reports

Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth

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Commercial Gaming Revenue Growth Continues in Q3 2024, Driving Industry’s 15th Consecutive Quarter of Growth

 

U.S. commercial gaming revenue reached $17.71 billion in Q3 2024, the industry’s highest-grossing Q3 on record, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. This makes Q3 2024 the industry’s 15th consecutive quarter of annual revenue growth, with September marking the 43rd straight month of rising year-over-year commercial gaming revenue.

Through the first nine months of the year, nationwide commercial gaming revenue stands at $53.24 billion, pacing 8.0 percent ahead of 2023 and putting the industry on track for a fourth straight record revenue year.

In Q3 2024, 29 of the 35 commercial gaming jurisdictions operational last year saw increased year-over-year revenue. This growth resulted in an 8.9 percent year-over-year increase in state and local taxes tied directly to gaming revenue, with commercial gaming operators contributing $3.79 billion in taxes across the quarter.

Quarterly revenue from land-based gaming – encompassing casino slots, table games and retail sports betting – totaled $12.56 billion, 0.62 percent lower than Q3 2023. Meanwhile, combined revenue from online sports betting and iGaming totaled $5.14 billion in Q3 2024 as online gaming made up 29.0 percent of commercial gaming revenue, a significantly higher share than in Q3 2023.

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Looking at each sector in Q3 2024:

  • Traditional Gaming: Traditional brick-and-mortar casino gaming generated quarterly revenue of $12.38 billion, a contraction of 0.9 percent year-over-year.
  • Legal Sports Betting: Americans legally wagered $30.3 billion on sports, generating $3.24 billion in quarterly revenue (+42.4% YoY). Recent market launches in Kentucky, Maine, North Carolina and Vermont contributed to this growth.
  • iGaming: iGaming generated $2.08 billion in revenue, marking a 30.3 percent year-over-year increase.

“Q3 2024 continued gaming’s momentum from the first half of the year, with online casino and sports betting driving strong growth. At the same time, new brick-and-mortar casino openings bolstered traditional gaming, which still accounts for the bulk of industry revenue,” said AGA Vice President of Research David Forman. “More than a quarter of commercial revenue now regularly comes from online sources, raising the importance of continued sustainable growth with consumers in those states.”

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