Rivalry Corp, an iGaming and sportsbook operator, unveiled its Q3 2024 performance, marked by significant restructuring, a strong pivot to a crypto-centric approach, and notable cost reductions. While revenue experienced a decline, the company expressed confidence in its leaner structure as a pathway toward profitability. The second quarter also marked huge revenues.
During the quarter, Rivalry recorded a betting handle of CAD 79.9 million ($56.90 million). Adjusted revenue, boosted by CAD 3.0 million ($2.14 million) in deferred revenue from its crypto-native token NUTZ, reached CAD 6.0 million ($4.18 million). Net revenue settled at CAD 3.0 million.
The casino segment drove growth, contributing 62% of the betting handle and 40% of net revenue, bolstered by new content and enhanced features. Marketing expenses dropped 30% year-over-year to CAD 2.0 million, while operational costs were halved, reflecting the company’s comprehensive realignment.
Crypto-First Strategy and Product Revamp
Rivalry embraced a crypto-native approach, introducing a new cashier system and VIP rewards aimed at high-value players (HVPs). Users with crypto wallets generated 200% higher revenue and showed 30% greater retention compared to non-crypto players.
The company also underwent a rebrand, adding over 40 sports to its sportsbook and redesigning its casino with interactive features like Casino Races. CEO Steven Salz highlighted the transformation, stating, “We are emerging as a fundamentally leaner company, better positioned for growth.”
The pre-launch of NUTZ added CAD 3.0 million in deferred revenue. Salz called the token a “cornerstone of our crypto-first and HVP strategy,” with an official launch slated for early 2025 and additional sales expected in Q4 2024 and Q1 2025.
Rivalry reduced its workforce by 50% and implemented salary cuts for senior executives, including Salz. These measures streamlined operations and created a high-output team. Meanwhile, the board saw a transition, with Kirstine Stewart stepping down as the company seeks leaders aligned with its crypto vision.
Rivalry plans to resume marketing in December, focusing on its revamped products. Salz emphasized the progress, noting, “Our average net revenue per user has hit all-time record levels, increasing by 51% compared to the 2024 year-to-date average.”
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