NorthStar in particular hailed its “Insights” content-proprietary editorial features, which offer players advice and guidance on betting. In Q3, players who read this content had 40% higher deposits on average than other players.
The operator also continued to benefit from its acquisition of Slapshot Media earlier in the year. Slapshot delivers marketing and operational management services to sports betting and igaming operators. In Q3 alone, the business generated $200,000 in managed services revenue.
Shortly after the quarter, NorthStar used the Slapshot business to support its expansion in Canada. Since launching in May 2022, NorthStar has only been accessible in Ontario but is now being made available across all provinces and territories in Canada with the roll out of NorthStarBets.com.
Reflecting on Q3, CEO Michael Moskowitz said that he was pleased with growth in what is a “seasonally slow” quarter. He also talked up further growth potential in Q4 and beyond.
We delivered another quarter of strong growth in Q3, more than doubling last year’s results across key measures including wagers and revenue,” Moskowitz said. “In a seasonally slow quarter, we continued to expand our customer base through our premium, differentiated product offering, while at the same time demonstrating our ability to effectively manage costs.
“As we enter the busiest time of the year with most of the major North American sports leagues now under way, we are very well positioned to drive further improvements in our results.”
Q3 net loss shortens as revenue climbs
Gaming activities drew $4.5m of all revenue in the three months to 30 September, a rise of 125.0% on last year. As the Slapshot Media deal only went through in 2023, there were no comparables for this area.
Total wagers in respect of NorthStarBets.com amounted to $138.0m, up 139.6% year-on-year. This increase was reflected in the revenue rise in Q3.
As for costs, service provider fees and operator participant fees both increased as NorthStar grew its offering. Marketing costs were slashed 55.8% to $2.0m, which helped reduce total expenses by 9.4% to $5.8m.
NorthStar did not disclose information on tax or other finances but did report a net loss for Q3 of $4.2m. This was an improvement on the $6.1m loss posted in the same period last year.
Significant year-to-date revenue growth
As to how the impacted year-to-date performance, gross gaming revenue was 420.0% up at $13.0m. This includes $12.6m in gaming revenue and the remainder managed services.
Total wagers in respect of NorthStarBets.com also hiked 500.3% to $434.6m.
Costs-wise, service provider fees and operator participant fees were higher but marketing expenses fell. However, higher spending elsewhere, including public listing costs, meant total expenses hit $22.7m, up 65.7% from last year.
This left a net loss of $18.0m, wider than $13.6m in the same period last year.
“Our strengthened balance sheet, strategic partnerships, ongoing innovation in our product offering and development of our brand across Canada all point towards solid growth for the rest of 2023 and into next year,” Moskowitz said.
NorthStar confirms exit of CFO Barber
Publication of the Q3 results comes after NorthStar also announced the departure of Jennifer Barber as chief financial officer.
Barber will depart NorthStar on 1 December to pursue another opportunity. She has served as CFO since June 2022.
Chin Dhushenthen, currently vice-president of finance and compliance at NorthStar, will assume the role of interim CFO.