Toronto-based Rivalry, the sportsbook and igaming operator targeting Millennials and Gen Z and operating in 20 countries, reported an 82 percent year-over-year increase in betting handle and a 34 percent year-over-year increase in revenue with the release of its results for the year ended Dec. 31, 2023. The company’s CA$35.7 million (US$26.1 million) in revenue represents an 8.4 percent hold on its handle of CA$423.2 million (US$309.1 million).
Gross profit was CA$16.2 million (US$11.8 million), a 66 percent year-over-year increase, along with a reduction in marketing spend of 15 percent.
“Rivalry exited 2023 as an increasingly diversified company, both geographically and across our product suite,” said Steven Salz, co-founder and CEO. “Last year, we gained meaningful traction in new segments, such as traditional sports, casino, and fantasy, which is widening our opportunity set and positioning us for sustainable growth in the medium to long term. We’re happy to have finished the year with all-time high customer economics, diversified revenue streams, and a reinforced competitive moat around Gen Z betting entertainment and experiences.”
Total player registrations ran over two million, the company said in a statement.
The company also reported that capital raised in late Q4 is being deployed to boost key performance indicators (KPI).
One trend the company is capitalizing on is what they say is meeting growing consumer demand by adding greater support for cryptocurrency. Rivalry also reports they’re seeing a rise in demand for licensing its in-house casino games.
“During Q1, we’ve been strategically deploying capital from our fourt- quarter investment in areas that are driving customer acquisition and revenue – such as amplifying proven marketing strategies, releasing higher margin products, and developing proprietary betting experiences – that we expect will begin materializing in our results throughout the first half of 2024 and beyond,” added Salz.
“Our operational excellence across product and brand marketing last year is seen across positive KPI trends and continued year-over-year growth. Ultimately, we’re proving that we can acquire and retain a coveted Gen Z demographic through an entertainment-led product set, culturally relevant brand, and a team unafraid of pushing past a long-standing industry status quo.”
Betting handle for the three-month period ended Dec. 31, 2023, was $85.2 million, an increase of 1.5 percent from Q4 2022. Revenue was $6.5 million in the Q4 2023, representing a decrease of $3 million or 32 percent from $9.4 million of revenue in Q4 2022.
The company pointed to less-favorable sportsbook outcomes compared against an abnormally favorable result experienced in Q4 2022.
