Rivalry Announces Record First Quarter 2022 Results

By | May 26, 2022

 

  • Betting handle of $40.2 million, a record high, up 273% year-over-year and 62% sequentially from Q4 2021.1
  • Revenue of $4.8 million grew 149% year-over-year and 122% sequentially.
  • Growth underpinned by increased operating leverage that prioritizes profitable customer unit economics.
  • Healthy cash position and no debt provides an important foundation for stability in the current market environment.

Rivalry Corp., an internationally regulated sports betting and entertainment company, today announced its financial results for the three-month period ended March 31, 2022. All dollar figures are quoted in Canadian dollars.

“We are pleased to report the highest betting handle and quarterly revenue in company history. 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,” said Steven Salz, Co-Founder and CEO of Rivalry. “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.”

First Quarter 2022 Highlights

  • Betting handle1 was $40.2 million in Q1 2022, a year-over-year increase of 273% compared to $10.8 million in Q1 2021 and up 62% sequentially from $24.9 million in Q4 2021.
  • Revenue was $4.8 million in the first quarter, a year-over-year increase of $2.9 million or 149% from $1.9 million in Q1 2021, and up 122% sequentially from $2.2 million in Q4 2021.
  • Gross profit was $0.7 million in the first quarter, a year-over-year increase of $0.1 million or 26% from $0.5 million in Q1 2021, and up 71% sequentially from $0.4 million in Q4 2021.
  • The Company had $30.1 million of cash and no debt as at March 31, 2022 compared to $35.5 million as at December 31, 2021.
  • On February 9, 2022, the Company was awarded its sports bookmaker license by the Northern Territory Racing Commission (Australia) pursuant to the Racing and Betting Act 1983 (NT), which allows the Company to legally operate throughout the whole of the country.
  • In March 2022, the Company announced the addition of mobile esports to its sportsbook, enabling customers to wager on competitive esports played on mobile devices.

Subsequent Events

  • The Company commenced operations in Ontario on April 4, 2022, the first day of regulated online gaming in the province.
  • The Company announced the launch of operations in Australia on May 9, 2022, marking its second regulated market.

“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,” said Steven Salz. “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,” Salz added.

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