Leading Gen Z sportsbook and iGaming company Rivalry has announced its second quarter financial results, which indicate a significant growth in net revenue. This accomplishment is mostly attributable to the business’s successful margin development tactics. Rivalry showcased substantial growth in the first quarter as well.
In Q2, Rivalry took in CAD 87.8 million ($65.1 million) in wagers, generating CAD 7.4 million ($5.5 million) in gross gaming income. With net revenue of CAD 4.7 million ($3.5 million) for the quarter, it was up 22% year over year and 3% higher than the prior quarter. Additionally, the business announced a record-breaking net sales margin of 62.5%, which Rivalry attributed to continuous efforts to improve margins that bring in more money for every dollar wagered.
The casino segment played a significant role in driving revenue, accounting for approximately 60% of the total betting handle and 24% of the gross gaming revenue in Q2. Despite these gains, Rivalry recorded a net loss of CAD 5.4 million ($4 million) for the quarter. As of June 30, the company held CAD 4.6 million ($3.4 million) in cash, and it remains optimistic about meeting its profitability guidance for the second half of 2024.
Rivalry’s Strategic Focus on Crypto
Rivalry also highlighted the growing influence of the Rivalry Token, a native cryptocurrency designed to be integrated across the company’s product offerings. The token continues to attract a global audience of crypto enthusiasts and high-value players. According to Rivalry, users of the Rivalry Token exhibit twice the value of average non-crypto customers, contributing CAD 1.7 million ($1.3 million) in revenue during the quarter. This underscores the potential of blockchain-based products within the iGaming sector.
Looking ahead, Rivalry plans to further enhance its crypto capabilities, focusing on the development of the Rivalry Token and expanding its VIP segments to drive additional value.
Rivalry’s co-founder and CEO, Steven Salz, expressed enthusiasm for the company’s future, particularly in the areas of tokenization and VIP growth. Salz emphasized that Rivalry is carefully managing its resources, optimizing teams, and reducing expenditures in lower-priority areas. He praised the company’s margin improvement efforts as particularly effective.
Salz also shared his optimism about the pre-release of the Rivalry Token, noting that early results have been highly encouraging. He remains excited about the ongoing enhancements in the company’s VIP segment, which he sees as a key growth driver.
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