Rivalry surfs “generational tidal wave” to record Q3 revenue

Handle through its Isle of Man-licensed Rivalry.gg esports betting portal came to CAD$23.2m in the third quarter, a 141.0% year-on-year rise from CAD$9.6m generated in Q3 2020.

After payouts to players, revenue jumped from just CAD$474,833 in Q3 2020, to CAD$3.7m.

This brought revenue for 2021 to date CAD$8.9m, up 617.5% compared to the same period in 2020.

“In the third quarter we delivered an all-time record performance, driven by our relentless pursuit to become the leading next generation sports betting brand in the world,” said Steven Salz, co-founder and CEO of Rivalry.

“We are at the center of an inevitable generational tidal wave that is reshaping consumer products across multiple industries, including sports betting,” he added.

“Through market leading brand equity, innovative product development, multiple new gambling licenses in process, and an unparalleled team, I’m confident Rivalry will continue to demonstrate to shareholders why we can define this new generational paradigm in sports betting.”

Turning to outgoings, revenue-related costs totalled CAD$3.1m, a rise of CAD$2.8m year-on-year, resulting in a gross profit of CAD$573,266 for the quarter.

This did lead to a significant hike in operating expenses, which grew 177.5% to $4.8m. As a result the business posted a CAD$4.2m operating loss.

However, foreign exchange gains of CAD$2.0m offset this to some extent, resulting in a net loss of CAD$2.1m for Q3, up 66.8% from the prior year.

Since the end of the quarter, Rivalry has broken another record, after amounts wagered in October hit $12.8m, its biggest single month to date. That month also marked its stock market debut, on the TSX Venture Exchange, and saw it roll out Rushlane, a new real-money title it claims creates a new genre of ‘massively multiplayer online gambling games’. The business is also angling for entry to Ontario’s re-regulated betting and igaming market, applying for licences in the province.

“Having completed our direct listing on the TSX Venture Exchange shortly after this record quarter, adding additional capital to the balance sheet, and with zero debt, followed by an all-time record performance in October, we believe we are setting up for a strong 2022 as we head into the off-season for esports,” Salz added.