Esports bookmaker Rivalry has released its financial results for Q3 2023, which includes increases in betting handle, revenue and gross profit year-to-year.
Despite this, the company reported a net loss of CAD $5.6m (~£3.2m), a 6% reduction from Q3 2022. In a press release, Rivalry stated that it maintains its expectation to become profitable in the first half of 2024.
Rivalry generated CAD$8.7m (~£5m) in total revenue during Q3, a 22% increase over the same time period last year and increased its gross profit by 90% to CAD$4.0m (~£2.4m), according to its financial report.
Betting handle is also up, rising from CAD$70.3m (~£40.8m) in Q3 2022 to CAD$105.7m (~£62.3m), an increase of 50% year-over-year. Rivalry noted that approximately half of the betting handle was generated from the Casino segment of Rivalry. In its press release Rivalry stated that: “Recent casino product launches set the stage for continued growth and increased player wallet share.”
The Canada-based sportsbook highlighted that it had its strongest customer KPIs on a year-to-date basis in the company’s history. The company also announced it will be hosting a virtual investor day which will be held on January 17th, 2024.
Despite a net loss of CAD$5.6m (~£3.2) for Q3 2023 Rivalry is confident that it will become profitable in the first half of 2024. Earlier this month, the company secured an investment of CAD$14M (~£8.1m) that is expected to allow Rivalry to pursue its goal of profitability and growth.
Outside of Rivalry’s financials, the company has undergone many other developments including an ad campaign with Brazilian content creator Baiano and the launch of an esports betting mobile app in Ontario.
Steven Salz, Co-Founder and CEO of Rivalry, stated commented on its Q3 2023 results: “We are proud to have delivered a record third quarter while exercising discipline on costs amidst a challenging capital markets environment for growth companies.
“Now, with our recently announced capital infusion, we will be able to go back on the offensive, while still maintaining our path to profitability.
“It is this proven operating leverage, supported by an improving sportsbook margin profile resulting in more revenue per dollar wagered, now fuelled by growth capital, that is creating a significant opportunity set for Rivalry. It is that combination which gives us confidence to reaffirm our first half 2024 profitability guidance.”