Rivalry Group, the company that owns and runs the legal sports betting platform Rivalry Limited, announced a whopping 151% year-over-year revenue growth in the first quarter of 2023.
Thanks to a record-high handle of $120.2 million — which was up 199% from the first quarter of 2022 — Rivalry hauled in $12 million in profits in Q1, and gross revenue of $5.4 million was up an astonishing 698% YoY, according to the Toronto-based company’s quarterly release on Wednesday.
Rivalry attributed its product and tech innovation along with a focus on Millennials and Gen Z, which make up 97% of its users, to its latest financial growth and to its doubling of registered users on its online sports betting sites from Q1 2022. Since Q4, Rivalry saw its revenue rise 27% during the period that ended March 31. Year-over-year net loss was cut in half from $6.6 million to $3.3 million.
The company boasted current capitalization that includes no debt and a cash position strength through equity financing, led by sports betting, technology, and payment stakeholders.
“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,” Rivalry co-founder and CEO Steven Salz. “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.”
The Pinnacle of Rivalry Group
Rivalry, which began in 2017, is licensed to operate in Canada and 19 other countries. The company relies on private investments from subordinate voting shares and plans to continue paying off its debts each quarter. The sportsbook and casino operator announced last month a non-brokered private placement investment deal for gross proceeds of up to $10 million headed by renowned bookmaker Pinnacle.
Rivalry believes those investments will help the company continue innovations and draw more users into the next quarter and beyond.
“Building innovative products, which add to an overall unique and interactive betting experience on Rivalry, will remain a strategic focus in 2023,” Salz said. “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.”
