Licensed in the Isle of Man, the Canada-based online gambling operator Rivalry has released its financial results for the second quarter of 2024. All figures are reported in Canadian dollars.
Rivalry co-founder and CEO Stephen Saltz stated: "At Rivalry, our strategy primarily focuses on two growth areas: expanding the use of cryptocurrencies through tokenization, and targeting VIP customers. At the same time, we are carefully managing working capital, optimizing our team, and reducing costs in non-core areas. Our focus on improving profit margins has shown positive results, as evidenced by the performance records set over the past two consecutive quarters."
Key Highlights of Q2 2024
In the second quarter of 2024, Rivalry's betting volume was 87.8 million Canadian dollars, a decrease of 6.9 million Canadian dollars (7%) from the first quarter of 2024, and down 24.4 million Canadian dollars (22%) from the second quarter of 2023. The decline in betting volume is attributed to the company's focus on profit margins, which led to reduced player balance conversions.
The Gross Gaming Revenue (GGR) for the second quarter of 2024 was 7.4 million Canadian dollars, down 0.3 million Canadian dollars (3%) from the first quarter of 2024, and down 1 million Canadian dollars (12%) from the same period last year.
Net revenue in the second quarter of 2024 increased to 4.7 million Canadian dollars, up 0.1 million Canadian dollars (3%) from the first quarter of 2024, and up 0.8 million Canadian dollars (22%) from the second quarter of 2023. Net revenue as a percentage of GGR reached a historical high of 62.5%, compared to 58.5% in the first quarter of 2024 and 45% in the second quarter of 2023.
The net profit margin (as a percentage of handled betting volume) reached 5.3%, the highest level in the past six quarters. This improvement is credited to the company's ongoing efforts to enhance profit margins through innovation and product optimization.
The casino business continues to play a key role in Rivalry's growth, accounting for 60% of the quarter's handled betting volume and contributing 24% of the GGR. The success of this business reflects the continuous expansion of Rivalry's casino product line, including the original game Cash & Dash launched in the second half of 2023.
Rivalry reported a net loss of 5.4 million Canadian dollars for the second quarter of 2024, which includes 0.52 million Canadian dollars in interest expenses related to convertible debt due at the end of 2025. The company considers the operating loss for the second quarter of 2024 to be 4.8 million Canadian dollars, a decrease from 6.2 million Canadian dollars in the second quarter of 2023, indicating improved management of working capital.
Rivalry also noted significant growth in user engagement with high-profit products, particularly the Pre Made Combos solution launched in January 2024, which has generated over 500,000 bets since its introduction, driving sustained growth in net revenue. The company plans to sign a licensing agreement for a first-person casino game, expected to bring new revenue streams to its B2B business.
Furthermore, Rivalry has streamlined the registration process for VIP users in global markets, ensuring compliance with regulatory standards while reducing friction. The company is confident about its profit prospects for the second half of 2024.
