Esports betting platform Rivalry has announced that October 2022 was the company’s first-ever profitable month.
Rivalry also revealed its financial results for the third quarter of 2022, which featured increases in revenue and betting handle.
Despite revealing that the company was profitable in October — a major milestone for Rivalry — it has not disclosed the financial figure.
Betting handle for the month ending October 31st, 2022 amounted to CAD $37.2m (~£22.9m), a 190% increase compared to CAD $12.8m (~£7.9m) in October 2021. This represents an all-time single-month record for the company.
The financial report does, however, show that despite this success Rivalry suffered losses in Q3 2022. The company saw a net loss of CAD $5.9m (~£3.6m) in the quarter, which ended 30th September 2022. This is an increase compared to CAD $4.2m (~£2.6m) in the same period last year.
Whilst reaffirmed in the financial report, Rivalry announced increased revenue and betting handle for the third quarter last month.
Compared to the same period last year, Rivalry recorded almost double its revenue — CAD $7.1m (~£4.4m) compared to CAD $3.7m (~£2.3m). The company also saw around four times the gross profit — CAD $2.1m (~£1.3m) compared to CAD $570,000 (~£350,000). The third quarter of 2022 saw Rivalry record the highest-ever revenue in any quarter.
Rivalry is an esports and sports betting company known mostly for its emphasis on millennial and Gen-Z users, as well as a more relaxed tone of voice compared to other brands in the segment. More than 80 percent of Rivalry users come from these two demographics, and more than 90% of its sportsbook handle comes from esports.
When comparing the first nine months of 2021 with the same period this year, Rivalry saw more than double gross profit — CAD $4.8m (~£2.95m) compared to CAD $1.8m (~£1.1m). However, Rivalry has garnered double the net loss, CAD $18.7m (~£11.5m) in 2022 compared to CAD $9.1m (£5.6m) in 2021.
Steven Salz, Co-Founder, and CEO of Rivalry, commented: “Delivering a clean net profit on a normalized basis is a promising validation of our overarching strategy which prioritizes sustainable user economics and careful capital allocation.
“We believe our +20% month-over-month average growth over the past year, successful casino product expansion, and increased market share ownership of esports betting positively signals directionally as to where we are headed.”