NorthStar Gaming has never had a quarter like the final one of 2023.
The Ontario-based online sports betting and casino company released its preliminary quarterly and yearly figures on Monday, and NorthStar is expecting record adjusted revenue of $6.5 million (Canadian dollars) in Q4, thanks to an increase in December business.
“We ended the year with our strongest quarter to-date, highlighted by record wagers and revenue as well as accelerating growth in player acquisition and deposits,” NorthStar CEO Michael Moskowitz said in a release. “In the fourth quarter, we also solidified our balance sheet and significantly expanded our addressable market.”
The total handle in the final three months of 2023 for NorthStarbets.ca is expected to be more than $213 million, a 90% increase from the same quarter in 2022. Adjusted revenue is up 103% year-over-year with gross revenue reaching $7.6 billion, an 84% increase, in the final quarter.
A year after recording a gross margin of $1.1 million in Q4, NorthStar expects to increase that to $2.5 million in 2023.
Massive growth
A Canadian provider that prides itself on being a “local” sportsbook and iGaming operator, NorthStar’s brand and profits grew incredibly in 2023.
The gaming company expects yearly adjusted revenue to be 242% higher year-over-year, going from $5.7 to $19.5 million.
Gross revenue jumped 208% year-over-year while final numbers are expected to produce a handle that went from $184.7 million in 2022 to $648.8 million in 2023.
The gross margin will jump 492% compared to 2022 to roughly $7.1 million in the latest year.
NorthStar will file its final results at the end of April.
Why such improvement?
The final quarter of 2023 saw NorthStar reach several achievements that put it on a profitable path.
The company secured a $10.3 million private funding investment, mostly from gambling technology company Playtech.
That helped lead to an initiative to expand online betting operations across Canada.
NorthStar also reached a deal during Q4 to absorb iGaming site Spreads.ca and receive service fees from the Abenaki Council of Wolinak for exclusive management of NorthStarbets.com.
The media segment of the company used its proprietary Insights content to grow readership by 40% and significantly increase player deposits and wagering.
Optimization of the business model led to a decrease in the cost of acquisition per customer as well.
“We are very optimistic about our growth trajectory and ability to create shareholder value in 2024,” Moskowitz said. “We plan to roll out exciting innovations to our product suite that will further differentiate NorthStar Bets as a premium offering uniquely suited for the Canadian market.
Continued momentum across our key metrics, together with an ongoing focus on cost management and optimizing our marketing, should deliver increasing operating leverage as the year progresses.”
