Esports and sports betting company Rivalry has revealed its preliminary financial results for the first quarter of 2023, as well as its complete results for 2022 as a whole.
The company saw growth in revenue in all mentioned time frames and announced that it saw a record last quarter in 2022. There has been an increase in all major metrics, but Rivalry still operates with a loss, albeit smaller than during the same time last year.
The financial results come just hours after Rivalry announced a strategic financing round of CAD $10m (~£5.8m) earlier today, led by betting company Pinnacle. The financial results follow a record third quarter of 2022, which included the first-ever profitable month for the betting company.
Rivalry shared that the betting handle for 2022 grew to CAD $232.8m (~£136.8m) in 2022, compared to CAD $78.2m (~£46m) in 2021. Revenues for the last year climbed from CAD $11m (~£6.5m) to CAD $26.6m (~£15.7m), and profit amounted to CAD $9.8m (~£5.8m), compared to CAD $2.2m (~£1.3m) in 2021. The overall cash reserves stand at CAD $16.4m (£9.6m).
Even though the last quarter of 2022 was a good period for the company, Rivalry still operates with a loss. The net loss for the year was CAD $31.1m (£18.29m), which is an increase from CAD $24.3m (£14.3m) in 2021. The company did note that the loss includes CAD $8.2m (£4.8m) of share-based compensation expenses, a non-cash item.
Rivalry also shared preliminary results of the first quarter of 2023, a period that also saw increases in revenue and other metrics. Betting handle increased 199% compared to the same period in 2021, and revenue climbed 151%. The net loss for the first quarter was roughly half the amount in 2021. Still, it must be noted that these are the preliminary results, and changes could be made once the final, audited results are public.
Rivalry CEO Steven Salz was positive in his public statements via Twitter. Salz noted that he is “positive that Rivalry will continue to deliver across all KPIs, put out more original products, and continue the company’s path to profitability.”
He also said that esports accounted for 90% of Rivalry’s sports betting handle and that Millenial and Gen Z customers represent 97% of the company’s user base.
In a letter to shareholders, Salz also noted that the company plans to launch a mobile app in several markets soon, as well as grow the company’s investor base. Rivalry will also be expanding its esports offering and working on expanding its geographic presence as much as possible.