Toronto-based sports betting and esports betting firm Rivalry has posted company records for betting handle and total revenues in Q1 of 2022, just before it launched in two key jurisdictions.
Publishing its first-quarter financial report, the Isle of Man-licensed gambling firm noted total revenues of CAD$4.8m, up 149% YoY and up 122% sequentially.
This stemmed from an increase in betting handle up to CAD$40.2m, a company record high, up 273% YoY and 62% sequentially.
Rivalry detailed that such growth was driven by ‘increased operating leverage that prioritizes profitable customer unit economics’.
Driving Q1 operations was the lead-up to Rivalry’s legal launch in its home province of Ontario following the market launch in April. The Gen-Z-focused firm commenced operations in Ontario on April 4, the first day of regulated online wagering in the province.
Meanwhile, Q1 also saw the firm secure a license to operate in Australia, receiving a sports bookmaker license from the Northern Territory Racing Commission of Australia. This gives Rivalry the regulatory authority to operate in the whole country.
“We are pleased to report the highest betting handle and quarterly revenue in company history,” said Steven Salz, Co-Founder and CEO of Rivalry. “These results are a testament to the consistency Rivalry has delivered for over two years now, demonstrating triple-digit year-over-year growth in every quarter.
“We note that first-quarter figures represent organic growth in our existing markets and do not include any results from our two new regulated markets, Ontario and Australia, both of which launched in the second quarter.”
Following a successful period of trading, Rivalry ended Q1 with a gross profit of CAD$0.7m, up 26% YoY and up 71% sequentially. Furthermore, it had accrued no debt by the end of the quarter. However, Rivalry disclosed it had CAD$30.1m cash at the bank, down from CAD$35.5m at the end of Q4 of 2021.
Salz added: “The strength we saw during the first quarter is evidence of strong momentum in the business. We expect to continue delivering considerable year-over-year growth throughout 2022.”
“On a sequential basis as it pertains to betting handle, as we have said in the past, the second and fourth quarters have typically been slower periods in the esports calendar, with the first and third being stronger. We expect the seasonality to become less pronounced over time as we grow traditional sports and casino as a percentage of our betting handle.”
“I’m very encouraged by the trends we’re seeing in the business and the performance of our team as we continue to execute on this generational opportunity. I’ve never been more confident,” he concluded.
