Esports betting platform Rivalry has announced its financial results for Q2 2023, showing an 86% rise in gross profit year-on-year to CA$3.8m (US$2.8m), but in the end it made a CA$6.3m net loss.
Alongside its gross profit increase, the company saw a revenue increase of 60% to CA$8.5m. The company’s betting handle also rose to CA$112.2m, up 192% year-on-year while the average betting handle per customer increased by 63% in the same period.
Betting momentum looks to continue into the third quarter with CA$46.6m in betting handle reported in July 2023, creating a single-month record; up 99% year-over-year.
Rivalry also acquired 44% more new customers year-on-year, while marketing spend decreased by 6% in the same timeframe.
However, despite its rise in revenue and gross profit, the company reported a CA$6.3m net loss which is a 1% increase on Q2 2022’s net loss of CA$6.2m.
The graph shows the company's profit over the financial year.
The company recited in its statement: ‘A select number of low probability esports and sports outcomes, alongside unique behavioral betting habits from Gen Z users, caused increased margin volatility and negatively impacted revenue, which combined with several one-time expenses expanded the Company’s net loss.’
Rivalry expects to reach profitability in the first half of next year driven by ‘consistent revenue growth, cost efficiencies, ongoing efforts to create a bespoke product and brand entrenchment within internet culture and gaming.’
Steven Salz, Co-Founder and CEO of Rivalry, commented: “In Q2 we delivered a nearly three-fold increase in handle year-over-year. Increased marketing sophistication and enhancements to our core product have led to operational improvements, increased player wallet share and a material year-over-year reduction in cost of customer acquisition, positioning us well in the coming quarters.
“The growing strength in these underlying fundamentals continues to validate Rivalry’s global brand leadership in esports betting, and more broadly, in delivering an online gambling experience for the next generation of fans.”
