Rivalry Corp has reported a net revenue of CAD4.7 million ($3.49 million) for the second quarter of the year, marking a 3% increase from Q1 2024 and a 22% rise compared to the same period in 2023.
This growth is attributed to the company’s strategic focus on improving margin efficiency, achieving a record net revenue margin of 62.5%, the highest in its history. This margin reflects ongoing efforts to generate more revenue per dollar wagered, despite a decline in betting handle.
The betting handle for Q2 2024 was CAD87.8 million ($65.19 million), a decrease from both Q1 2024 and Q2 2023. Rivalry attributes this decline to its prioritization of margin improvements, which can lead to reduced player activity. Gross gaming revenue (GGR) for the quarter was CAD7.4 million ($5.49 million), down slightly from the previous quarter and the same period last year.
Rivalry’s shift towards cryptocurrency, spearheaded by the introduction of the Rivalry Token, has been a key driver of recent success. Launched in a pre-release phase, the Rivalry Token has generated CAD1.7 million ($1.26 million) in revenue following the end of Q2, signaling early traction among crypto enthusiasts and high-value players.
Rivalry CEO Steven Salz expressed confidence about the token’s potential, noting that it has already attracted new customers who are twice as valuable as the average user and has led to the company’s most successful reactivation campaign to date. Salz also highlighted the company’s plans to continue expanding its crypto offerings.
“Rivalry Token is uniquely positioned to serve a number of our near- and long-term goals to expand our geographic footprint and acquire and retain high-value players,” said Salz.
The company has an extensive roadmap for Rivalry Token, including the introduction of social-based products expected to launch in September 2024, aimed at further enhancing player engagement and driving growth in the crypto gambling segment.
In parallel with its crypto strategy, Rivalry is placing greater emphasis on VIP players, a segment that has historically been under-targeted by the company. Salz stated that this shift marks a strategic correction, with the potential to significantly impact Rivalry’s business outcomes by focusing on a smaller percentage of players who generate the majority of revenue in the online gambling industry.
Despite a net loss of CAD5.4 million ($4 million) for Q2 2024, Rivalry points to a CAD500,000 ($371,232.5) interest expense on a convertible debenture, which is not due until late 2025. The adjusted net loss, when considering this factor, was CAD4.8 million ($3.56 million), an improvement from the CAD6.2 million ($4.60 million) loss recorded in Q2 2023.
The casino segment continues to be a strong contributor, accounting for 60% of the betting handle and 24% of GGR in Q2. Rivalry is also planning to enter a licensing agreement for its first-party casino games in the coming months, which is expected to establish a new revenue stream for its B2B vertical.
Original article: https://www.yogonet.com/international/noticias/2024/08/30/76988-rivalry-reports-22-revenue-growth-in-q2-2024-targets-crypto-expansion-and-vip-focus
