- Handful of $ bet38.4 million, up 98% year-on-year.1
- Record income of $5.3 million increased 60% year over year and 11% sequentially, all growth being organic.
- Record gross profit of $2.1 million, an increase of 206% year over year and 201% sequentially.
- Growth supported by increased operating leverage that prioritizes profitable client unit economics.
- A strong cash position and no debt is an important foundation for continued execution.
- Well positioned for a strong second half with a number of catalysts to extend the leadership position.
- The momentum continued in the third quarter with $23.4 million in bets in July 2022, an all-time high month-on-month, up 66% month-over-month and +162% year over year.
1 The Company defines “bet handle” or “handle” as the total dollar value accepted in wagers, adjusted for voids and corrections.
TORONTO, Aug. 25, 2022 (GLOBE NEWSWIRE) — Rivalry Corp. (there “Company” Where “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), an internationally regulated sports betting and entertainment company, today announced its financial results for the three and six-month periods ended as of June 30, 2022. All dollar figures are quoted in Canadian dollars.
“We are very encouraged by our performance in the second quarter, showing significant year-over-year growth across all core metrics, as well as sequential growth across a number as well, despite what is a seasonal quarter. calm in the esports calendar,” said Steven Salz. , co-founder and CEO of Rivalry. “And so far, our momentum in the third quarter continues this growth trajectory, including hitting another all-time high for betting management in a single month, delivering $23.4 million in July. With a number of With impactful product launches, marketing and operational initiatives planned throughout the year, we look forward to demonstrating to the market the operational leverage inherent in our model.
Second Quarter 2022 Highlights
- bet handle1 was $38.4 million in Q2 2022, a 98% year-over-year increase from $19.4 million in Q2 2021, and a 4% sequential decline from the level record $40.2 million in Q1 2022, as Q2 is a slower seasonal quarter.
- Revenue reached a record $5.3 million in the second quarter, a year-over-year increase of 60% from $3.3 million in the second quarter of 2021, and represented the highest ever recorded by the company in a quarter. Revenue increased 11% sequentially from $4.8 million in the first quarter of 2022.
- Gross profit reached a record $2.1 million in the second quarter, a year-over-year increase of $1.4 million or 206% from $0.7 million in Q2 2021 , and a 201% sequential increase from $0.7 million in Q1 2022.
- The Company had $27.8 million in cash and no debt as of June 30, 2022.2
- The company began gaming operations in Ontario on April 4, 2022, the first day of regulated online gaming in the province.
- The company announced the launch of gaming operations in Australia on May 9, 2022.
2 Includes cash and cash equivalents of $24.1 million and restricted cash of $3.7 million.
“The strength of the business in the second quarter was entirely realized organically and driven by our core existing markets. The launch in our first two regulated markets was a very important milestone in the second quarter that will help drive growth over the of the coming quarters as we establish our brand with consumers, deploying our “crawl, walk, run” strategy which prioritizes operating first with a sustainable unit economy in new markets, and bringing the scale of spending thereafter,” Salz added. “We were very encouraged by our performance in the second quarter given that we have not seen any material contribution from either of these markets at this time, and in what is already a quiet seasonal quarter. On the other hand, we were proud to demonstrate the profitable potential of our current handful of bets, posting record gross profit in the quarter.
“Looking ahead, we are excited about the second half of the year,” added Salz. “The traditionally strong third quarter is going well for us. Several significant platform enhancements in areas such as mobile apps, traditional sports offerings and our casino business are expected to launch in the coming months. »
Investor conference call
Management will hold a conference call at 10:00 a.m. EDT on Thursday, August 25, 2022 to discuss the Company’s second quarter 2022 financial results.
|Compose:||888-396-8049 (toll-free) or (+1) 416-764-8646 (local or international calls)|
|Webcast:||A live webcast can be accessed from the Events section of the Company’s website at www.rivalrycorp.com or at this link.
A replay of the webcast will be archived on the Company’s website for one year.
Rivalry’s financial statements and MD&A for the period ended June 30, 2022 are available on SEDAR at www.sedar.com and on the Company’s website at www.rivalrycorp.com.
Rivalry Corp. Wholly owns and operates Rivalry Limited, a leading sports betting and media property offering fully regulated online esports, traditional sports and casino betting for the next generation of bettors. Based in Toronto, Rivalry operates a global team in over 20 countries and continues to grow. Rivalry Limited has held a license in the Isle of Man since 2018, considered one of the leading online gambling jurisdictions. Rivalry holds a sportsbook license in Australia and internet gambling registration in Ontario and is currently in the process of obtaining additional country licenses. The company also offers a variety of originally developed products, including Quest, an engaging on-site experience, and an original casino game called Rushlane, an exclusive casino game that marks the creation of a new gaming category. online: massively multiplayer online games of chance. (MMOGG).
Jeff Codispodi I [email protected]
Steven Salz, co-founder and CEO
Caution Regarding Forward-Looking Information and Statements
This press release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of current or historical facts are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuing”, “ongoing”, “estimate”, “outlook”, “expect”, “project”, and similar words, including their negatives, suggesting future results or that certain events or conditions “may” or “will occur”. These statements are only predictions. Forward-looking statements in this press release include, but are not limited to, statements regarding the growth of the company’s monthly wager management and other performance indicators, as well as planned launches in other jurisdictions. .
Forward-looking statements are based on the opinions and estimates of the Company’s management as of the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set forth in the forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown variables, risks and uncertainties, many of which are beyond the Company’s control, which may cause the Company’s actual performance and results to differ. materially of any projected future performance or results expressed or implied by such forward-looking statements. These factors include, among others, regulatory or policy changes such as changes in applicable laws and regulations; the ability to obtain and maintain required licenses; the esports and sports betting industry being a heavily regulated industry; the complex and evolving regulatory environment of the online gaming and betting industry; the success of esports and other betting products is not guaranteed; changes in public perception of the esports and online gambling industry; inability to retain or add customers; the Company having a limited operating history; negative operating cash flow; operational risks; cybersecurity risks; the impact of the COVID-19 pandemic; dependence on management; reliance on third parties and third party networks; currency risks; risks associated with cryptocurrency transactions; risk of intellectual property infringement or invalid claims; the effect of capital market conditions and other factors on the availability of capital; competition, including from more established or better financed competitors; and general economic, market and business conditions. For additional risks, please see the Company’s prospectus dated September 17, 2021 and other disclosure documents available on the Company’s SEDAR profile at www.sedar.com.
There can be no assurance that the expectations reflected in the forward-looking statements will prove to be accurate. Although the forward-looking statements contained in this press release are based on what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such statements. forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this press release. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements contained or referred to herein. , except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein.
Source: Rivalry Corp.