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  • Q1 2024: Rivalry shifts profitability target as net revenue falls 16.7%
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Rivalry CEO Steven Salz praised sequential increases in betting handle, GGR, and net revenue in Q1, however year-on-year growth has yet to return.

Topline numbers

Rivalry reported an 11% sequential increase in betting handle to C$94.7m for Q1 2024 and a 20% sequential rise in GGR to C$7.7m.

Net revenue for the quarter reached C$4.5m, a 51% increase from Q4 2023.

However, when comparing Q1 2024 to Q1 2023 results, betting handle dropped 21.2%, GGR declined 35.8% and net revenue fell 16.7%.

The casino segment continues to be a strong contributor, generating 59% of betting handle and 19% of GGR in Q1 2024.

The firm’s net loss was C$5.2m in Q1 2024, which marked Rivalry’s narrowest net loss of the last four quarters, though it was significantly higher than the net loss of C$3.3m recorded in Q1 2023.

CEO commentary

“Our first quarter results saw a return to growth with sequential increases in betting handle, gross gaming revenue, and net revenue,” said Rivalry CEO and co-founder Steven Salz.

“We are also very encouraged by the improvement to net revenue margin experienced in the quarter, hitting an all-time record, proving our strategy is delivering results, and representing a meaningful improvement as compared to the average levels experienced throughout 2023.”

Rivalry reported that the net revenue margin for Q1 2024 as a percentage of GGR was 58.5%, which was the highest in the company’s history, compared to 45.4% in FY 2023.

Additionally, the net revenue margin as a percentage of betting handle stood at 4.7%, marking the highest figure in the past five quarters.

Nonetheless, the company revised its profitability target from H1 2024 to the end of 2024.

Crypto ambitions

The biggest news this week, however, was Rivalry’s entry into the crypto gambling segment, with the introduction of its Rivalry Token.

“This represents a meaningful strategic step for Rivalry, complementing our existing approach which focuses on a generation that grew up immersed in gaming and internet culture, and now extending that reach to the crypto community,” CEO Salz said today (30 May).

“The Venn diagram of Gen Z, gamblers, gamers, and crypto enthusiasts or crypto curious has an extremely high degree of overlap that we are uniquely positioned to access.” 

To increase its appeal to crypto enthusiasts, Rivalry has overhauled its homepage, launched a crypto wallet experience, and adjusted the onboarding experience for new users “to materially reduce friction while maintaining compliance.”

Salz stated that the firm aims to target the “higher value crypto gambling cohort”.

“This comes at an opportune time, as momentum in crypto gambling has been building amongst our target audience and they’ve been gravitating towards it.

“By expanding our product offering into this segment, it positions us to compete and win as we innovate product and gain access to this higher value customer cohort,” Salz said.

Furthermore, Rivalry said it is seeing interest in licensing its first-party casino games and will soon reveal progress on advancing its B2B vertical.

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