Canadian sports betting and entertainment company Rivalry Corp. announced Thursday the financial results for the first quarter of 2022, showing revenue growth of 149% to CAD 4.8 million (USD 3.7 million) year-over-year, and a record high betting handle of CAD 40.2 million (USD 31.7 million), a growth of 273% compared to 2021.
The company also reported gross profit of CAD 0.7 million (USD 553,000) in the first quarter, a year-over-year increase of 26%. The company had CAD 30.1 million (USD 23.7 million) of cash and no debt as of March 31, 2022, compared to CAD 33.5 million (USD 26.4 million) on December 31, 2021.
In an official statement, Steven Salz, Co-Founder and CEO of Rivalry, spoke about these results and said: “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. 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”.
This past quarter’s numbers come from milestones achieved during the past three months, including the award of a sports bookmaker license by the Northern Territory Racing Commission (Australia) pursuant to the Racing and Betting Act 1983, which allows the company to legally operate throughout the country.
The company also announced the addition of mobile esports to its sportsbook; commenced operations in Ontario after the regulation of online gaming in the province; and the official launch in Australia in May.
“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”, Salz continued.
“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 concluded.
In April, Rivalry also posted record fourth quarter and year-end 2021 results. The operator reported a betting handle of CAD $78.2 million ($60.9 million) for the full year, increased 202% year-over-year, and a betting handle of CAD $24.9 million ($19.4 million), up 389% YoY. The momentum is being fueled by economic customer acquisition costs and robust payback periods, the business said then.