Rivalry returns to growth in Q1 2024

Rivalry made history with 51% increase in net income

Sportsbook and igaming operator Rivalry released its 2024 first quarter financial results which indicate considerable growth. The company reported that during this period its betting handle reached $94.7m, a figure that represents an 11% increase from Q4 2023.

Additionally, gross gaming revenue (GGR) went up by 20% hitting $7.7m while net income realized the greatest leap forward – it moved from $3m to $4.5m, an increase of 51%, achieving the highest number in Rivalry history. One thing worth noting is that this means netting 58.5% more in net revenue margin.

Steven Salz, who is the co-founder and CEO of Rivalry, commented:

“Our first quarter results saw a return to growth with sequential increases in betting handle, gross gaming revenue, and net revenue. 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.”

The casino business line remains one of the key revenue generators for Rivalry. The first quarter results showed that bets placed under this category accounted for 59% of the total betting handle and 19% of GGR. The reason behind the strong numbers is the expansion of the Rivalry casino segment which saw the introduction of various games such as Cash & Dash in the second half of 2023.

In addition, new features like basketball same-game parlays plus pre-made parlays were launched specifically meant to spike earnings through increased client interaction, especially during the NBA playoffs 2024.

Salz further added:

“Additionally, interest in our original casino content continues to build, unlocking B2B revenue opportunities that we are keen to detail more fully in the near future.”

However, it is important also to acknowledge that Rivalry reported a net loss of $5.2m for the quarter. It is indeed the narrowest number for the past four quarters but still it shows the challenges Rivalry faces in the highly competitive igaming market. As a result, Rivalry has updated its profitability guidance. This has been changed from expecting to achieve profitability in the first half of 2024 to the end of 2024.

On top of its financial performance, Rivalry recently announced a major strategic expansion into the cryptocurrency betting industry by releasing the Rivalry Token. Slated for roll-out during Q3 2024, it aims at capturing gamers under 30 years old who are into gaming and internet culture.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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