Canada

Rivalry Reports Preliminary Fourth Quarter and Year-End 2023 Results

Published

4 months ago

April 5, 2024

Betting handle of $423.2 million in FY 2023¹ increased 82% year-over-year, while reducing marketing spend 15%.
Revenue of $35.7 million in FY 2023 increased 34%.
Gross profit of $16.2 million in FY 2023, up 66% year-over-year.
FY23 sets all-time records for average handle per customer, up nearly 30% year-over-year, average revenue per customer up 38% year-over-year, and record low cost of customer acquisition, down 15% year-over-year.
Total player registrations eclipsed 2 million in FY23 while extending Gen Z market leadership.
FY24 off to a strong start as the capital raised late Q4 is being effectively deployed – delivering strong KPIs, supported by betting margin trending toward a more than 20% increase over the average of FY23.
To meet growing consumer demand the Company is adding greater support for cryptocurrency and exploring implementation of adjacent crypto-enabled technologies.
Rivalry is seeing a rise in demand to license its in-house casino games, accelerating the advancement of its B2B vertical.
Company re-affirms guidance, anticipates achieving profitability in H1 2024.

Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Gen Z, today announced preliminary and unaudited financial results for the three and 12-month periods ended December 31, 2023. All dollar figures are quoted in Canadian dollars.

“Rivalry exited 2023 as an increasingly diversified company – both geographically and across our product suite,” said Steven Salz, Co-Founder and CEO of Rivalry. “Last year we gained meaningful traction in new segments such as traditional sports, casino, and fantasy, which is widening our opportunity set and positioning us for sustainable growth in the medium- to long-term. We’re happy to have finished the year with all-time high customer economics, diversified revenue streams, and a reinforced competitive moat around Gen Z betting entertainment and experiences.”

“During Q1 we have been strategically deploying capital from our fourth quarter investment in areas that are driving customer acquisition and revenue – such as amplifying proven marketing strategies, releasing higher margin products, and developing proprietary betting experiences – that we expect will begin materializing in our results throughout the first half of 2024 and beyond,” added Salz.

“Our operational excellence across product and brand marketing last year are seen across positive KPI trends and continued year-over-year growth. Ultimately, we are proving that we can acquire and retain a coveted Gen Z demographic through an entertainment-led product set, culturally relevant brand, and a team unafraid of pushing past a long-standing industry status quo.”

Preliminary Full-Year 2023 Highlights²

Betting handle was $423.2 million in the year ended December 31, 2023, an increase of $190.4 million or 82% from $232.8 million in 2022.
Revenue was $35.7 million in 2023, an increase of $9.0 million or 34% compared to $26.6 million in the previous year.
Gross profit was $16.2 million in 2023, an increase of $6.4 million or 66% from $9.8 million of gross profit in 2022.
The Casino segment was a significant driver of growth in 2023, with revenues of $6.4 million up 92% from 2022, and representing 52% of betting handle in the year.
The Company expanded its casino offering significantly during 2023, including the release of a new original game Cash & Dash in September, entry into the slots category in October, and the launch of its iOS mobile app in Ontario, enhancing the mobile casino experience and its accessibility.
Diversified revenue streams through new segments including traditional sports, which has grown by 60% since FY22, and fantasy, highlighting the elasticity of Rivalry’s brand among Gen Z and broadening TAM.
Total operating expenses of $38.9 million in 2023 decreased by $1.0 million year-over-year. The decrease was driven by a reduction in marketing expense, offsetting increases in general & administration and technology & content expense incurred to support the growth of the business.
Net loss was $24.3 million for 2023, a reduction of 22% or $6.9 million from the net loss of $31.1 million in 2022.

Fourth Quarter 2023 Highlights

Betting handle for the three-month period ended December 31, 2023 was $85.2 million, an increase of $1.2 million or 1.5% from $83.9 million in the fourth quarter of 2022 while marketing spend decreased by 32%.
Revenue was $6.5 million in the Q4 2023, representing a decrease of $3.0 million or 32% from $9.4 million of revenue in Q4 2022 due to less favorable sportsbook outcomes compared against an abnormally favorable result experienced in Q4 2022. The Company notes that revenue as a percentage of betting handle was near the average achieved throughout FY23, highlighting the abnormally favorable margin outcome in the comparable quarter, Q4 2022.
Gross profit was $3.0 million in Q4 2023, a decrease of $2.0 million or 40% from $5.0 million of gross profit in Q4 2022. The year-over-year decline follows the relative margin impact noted previously. Gross profit as a percentage of betting handle in Q4 2023 was equal to the average in FY23. Rivalry is also pleased to note that its ongoing efforts to stabilize and improve margin are yielding results, with Q1 2024 trending toward a more than 20% improvement over the average in FY23.
Net loss was $9.0 million in Q4 2023, a reduction of $3.3 million compared to a net loss of $12.3 million in Q4 2022. Net loss adjusting for accruals, other non-cash items, and one-time expenses, would have been approximately $7.0 million.
On November 15, 2023, Rivalry strengthened its balance sheet with the announcement of a private placement offering of $14 million principal amount senior secured convertible debentures to scale several strategic verticals across marketing, product development, and geographic expansion.
Released Rivalry Ultimate Fan, a free-to-play NBA fantasy app, to acquire new users and engage existing customers within the product suite.
First-party game ‘Cash & Dash’ released in September demonstrated next generation appeal as it became the fifth most-played casino game on our platform and among the top ten highest-grossing by revenue with momentum carrying into Q1, creating downstream licensing opportunities for Rivalry’s IP.

Outlook

“The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024,” Salz added. “In addition to the strength of our core roadmap, we are in the process of unlocking what we believe to be two of the most material developments to our business model since launching Rivalry in 2018. The first is a B2B vertical to license our in-house developed games, and the second is exploration and development within the crypto ecosystem – each representing an impactful growth catalyst on our path to profitability this year.”

“I have never had more confidence in our product roadmap and what Rivalry is building this year. Apart from new products, original games, and proprietary features, we have been working to dial-up the overall feel and entertainment value of our core product to provide a tech-savvy, next generation customer with a tailored experience that is well-differentiated within the larger sports betting marketplace.”

Investor Conference Call

Management will host a conference call at 10:00 a.m. EDT on Friday, April 5, 2024 to discuss the Company’s preliminary unaudited year-end and fourth quarter 2023 financial results.

Dial-in:		800-717-1738 (toll free) or (+1) 289-514-5100 (local or international calls)
		Webcast: A live webcast can be accessed from the Events section of the Company’s website
		A replay of the webcast will be archived on the Company’s website for one year.

Rivalry expects to file its audited financial statements and management discussion and analysis for the period ended December 31, 2023 by the end of April 2024. The documents will be available on SEDAR+ at sedarplus.ca, and on the Company’s website.

Related Party Transaction

On April 17, 2022 the Company entered into a secured demand loan (the “Loan”) with Kevin Wimer, the Chief Operating Officer and a Director of the Company. Pursuant to the terms of the Loan, the Company loaned Mr. Wimer US$385,000 which amount bears interest at 3.2% per annum and was repayable on demand by the Company and in any event by April 17, 2024 (the “Maturity Date”). The Loan was entered into to assist Mr. Wimer with the funding of certain tax obligations and is secured by a pledge of Mr. Wimer’s subordinate voting shares of the Company. The Company announces today that it has entered into an amendment to the Loan (the “Loan Amendment”) to extend the Maturity Date to April 17, 2026. The Loan Amendment was approved by the non-interested directors of the Company.

Mr. Wimer is a “related party” of the Company within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). As a result, the Loan Amendment is considered to be a “related party transaction” as such term is defined by MI 61-101. The Company is relying on an exemption from the minority shareholder approval requirement set out in MI 61-101 as the fair market value of the transaction does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before entering into the closing of the Loan Amendment as the details of the Loan Amendment were not settled until shortly prior to the entering into thereof.

Canada

Aristocrat Interactive Expands to Play Alberta with New Games

Published

2 days ago

July 25, 2024

Niji Narayan

iGaming in Alberta continues to soar to new heights on PlayAlberta.ca. Alberta’s only regulated gambling website has now added select titles from Aristocrat Interactive, Aristocrat Leisure Limited’s regulated online Real Money Gaming (RMG) and Gaming Systems division.

The integration of Aristocrat Interactive’s games will provide a familiarity for players, as Aristocrat Leisure Limited’s land-based gaming division, Aristocrat Gaming, is the number one supplier of slot terminals within Alberta land-based casinos.

“Adding another world-renowned games provider to PlayAlberta.ca only helps bolster entertainment offerings for our players. Aristocrat Gaming has an established presence globally and bringing their features to Alberta will continue to enhance the province’s only regulated gambling website while encouraging Albertans to use a safe-and-secure iGaming destination ” Steve Lautischer, Executive Vice President, Business Development.

“Expanding our reach across North America remains a key priority and this launch with Play Alberta represents another milestone in our commitment to delivering the very best content to players in the region. Play Alberta has resonated with players across the province and we are thrilled to establish what we are sure will be a very positive relationship,” Shivan Patel, VP of North America at Aristocrat Interactive.

Titles being added to Play Alberta include: Buffalo, Wicked Winnings II, 7 Hot 7 and Gold Stacks 88 Lunar Festival with more set to be available in the coming weeks.

Being Alberta’s only regulated gambling website and a leader in online gambling means offering players responsible gambling tools that engage all players. AGLC’s GameSense and Self-Exclusion programs are best-in-class resources that offer bet, deposit and loss limits, to make sure players are in control of their gambling.

Canada

OLG and Team Canada Launch Official Partnership Ahead of Paris 2024

Published

1 week ago

July 18, 2024

Niji Narayan

Ontario Lottery and Gaming Corporation (OLG) has entered into a partnership with the Canadian Olympic Committee and Canadian Paralympic Committee and has become the Official Ontario Lottery Partner of Team Canada for the upcoming Paris 2024 Olympic and Paralympic Games.

“Ontario is ready to cheer on Team Canada athletes as they compete in Paris this summer. This new partnership is showcasing one of the many ways OLG’s support makes a difference to people and communities across the province,” said Stan Cho, Minister of Tourism, Culture and Gaming.

“We are thrilled to welcome OLG to Team Canada. Ontario has such a rich sporting history and OLG has long been a supporter of sport and amateur athletes. We know this support has made a profound impact on athletes across the province, whether they’re engaged in sport at the grassroots level or pursuing their Olympic dreams,” said Jacqueline Ryan, Chief Brand and Commercial Officer of the Canadian Olympic Committee and CEO of the Canadian Olympic Foundation.

“We are so pleased to be entering a new partnership with OLG and welcoming them into the Canadian Paralympic community. We know support for sport and athletes has been important to OLG for many years, and we are excited to work with them to continue to champion Ontario’s Para athletes and inclusive sport across Ontario,” said Karen O’Neill, CEO, Canadian Paralympic Committee.

As momentum builds toward the Paris 2024 Olympic and Paralympic Games, OLG is also shining a spotlight on its players, who have helped support amateur athletes in Ontario by playing with OLG. The new “Sponsored by You” campaign reinforces that when you play with OLG, you support Ontario athletes.

Since 2006, OLG and the Ontario government have supported high-performance amateur athletes through the Quest for Gold athlete assistance program. The program has provided direct financial support to thousands of amateur athletes, enhancing their ability to train by offsetting the costs of training and living expenses.

“Many people don’t realize 100 per cent of OLG’s profits are reinvested into Ontario, and that we have a longstanding history of supporting amateur athletes. OLG’s ability to give back to communities is only possible thanks to our players, so we wanted to use this opportunity to recognize and celebrate them,” said Maxine Chapman, VP Brand & Marketing Officer at OLG.

OLG’s campaign features Team Canada athletes Andre De Grasse, Penny Oleksiak, Maggie Mac Neil, Jillian Weir and other Ontario athletes and Para athletes who have received funding from Ontario’s Quest for Gold program.

“Training for the Olympics takes a lot of preparation – physically, mentally and financially – and it’s not something you can succeed at alone. Having programs like Quest for Gold to help and knowing your community is supporting you makes all the difference, especially when you’re competing on the world stage,” said six-time Olympic medallist Andre De Grasse.

The success of the Quest for Gold program shows in the numbers – in the last four Olympic cycles, over 90% of Ontario medal winners had received Quest for Gold funding during their career.

“The Quest for Gold program showcases our government’s continued efforts to enable Ontario athletes to achieve their full potential at the highest levels of competition. We are proud to join with the OLG, our partners across the sport sector and all Ontarians in wishing our Olympic and Paralympic athletes the best of luck in Paris,” said Neil Lumsden, Minister of Sport.

Canada

Greo and CCSA Release New Report Named “Gambling Availability and Advertising in Canada: A Call to Action”

Published

3 weeks ago

July 5, 2024

Niji Narayan

Recent gambling policy changes in Canada have led to increased opportunities to legally bet on sports and gamble online, 24 hours a day, seven days a week. The report “Gambling Availability and Advertising in Canada: A Call to Action” looks at the impacts of legal gambling in Canada since the approval of the Safe and Regulated Sports Betting Act in 2021. The report recommends developing a pan-Canadian strategy to address gambling-related harms. This is a new report by Greo Evidence Insights (Greo) and the Canadian Centre on Substance Use and Addiction (CCSA).

This call to action is in response to the significant increase in gambling advertising on billboards, social media, at commercial breaks during sports broadcasts and during sporting events. Increased gambling availability and advertising are expected to contribute to increased gambling in Canada, thereby posing a significant risk of harms among the general population, particularly for youth, young adults and other vulnerable populations.

The report also describes how the increased availability of gambling and in gambling advertising are of great concern because:

The types of gambling being made available and promoted (single-event sports betting and live or in-play betting) are associated with a greater risk of harm. For example, single-event sports betting increases gambling intensity and gives an illusion of control over the outcome as people believe their knowledge of the game gives them a competitive edge.
The volume of gambling advertisements repeatedly pairing sports with betting normalizes gambling, leading people to think of betting as an integral part of being a sports fan.
Increased availability of gambling and in gambling advertising are happening at a time when many people in Canada are more vulnerable to problematic gambling and gambling-related harms because of the lingering health impacts of COVID-19 and a rise in the cost of living.

“Over the last few years, we have witnessed some of the most significant changes in gambling policy since the 1970s. We have seen a massive increase in gambling advertising and opportunities to gamble. We can no longer watch sports with our kids or go online without being subjected to an overwhelming amount of gambling advertising. Canada is at a critical moment in how it manages gambling. A national strategy or framework — similar to what we have for alcohol, tobacco and cannabis — is critical to manage the expected increase in gambling harm, especially among youth and other vulnerable people,” explained Dr. Matthew Young, Chief Research Officer at Greo, Senior Research Associate at the CCSA and Adjunct Professor at Carleton University.

The report recommends developing a national strategy that will:

Develop national standards governing the promotion and availability of gambling;
Manage conflicts of interest among gambling stakeholders;
Address inadequate funding for gambling harm prevention and reduction initiatives and research;
Monitor systematic changes in gambling-related harm, including any assessments of the social and economic costs of gambling; and
Increase awareness of gambling-related harms among health and social service professionals and the public.

“Increased gambling among people living in Canada will undoubtebly result in increased harms and therefore increased societal costs. These include healthcare costs, criminal-justice costs, child welfare costs, increased unemployment and lost productivity costs because of gambling-related suicide. We need to think about our approach and ensure that it considers not only short-term government revenue and economic activity but also the longer-term societal costs. That’s why we need a national strategy,” Dr. Pam Kent, Director of Research and Emerging Trends at CCSA, said.