Sports betting and media company Rivalry reported on Wednesday its third-quarter results, posting record quarterly revenue and betting handle. “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.
For the period ended September 30, betting handle amounted to $18.3 million, up 141% from $7.6 million in Q3 2020. Revenue was $2.9 million, up $2.5 million or 679% from $.04 million last year.
The Toronto-based operator completed its listing on the TSX Venture Exchange shortly after the record quarter, a move expected to add additional capital to the balance sheet. Along with zero debt, and followed by an all-time record performance in October, the company expects now to be positioned “for a strong 2022” as it heads into the off-season for esports.
“We are at the center of an inevitable generational tidal wave that is reshaping consumer products across multiple industries, including sports betting,” Salz 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.”
Throughout the quarter, the company posted record engagement across its content and social media properties. Moreover, shareholders elected independent directors Kirstine Stewart and Stephen Rigby.
In terms of subsequent events, the company officially launched its proprietary casino game Rushlane in October, the same month in which it announced that it had submitted an application to the Alcohol and Gaming Commission of Ontario to become a fully registered operator in the province.
During October, the company achieved record results, including all-time highs for betting handle and monthly active bettors. Handle of $10.1 million was the highest monthly figure ever recorded by Rivalry, exceeding the previous monthly high by more than 40%.
“Given the demographic Rivalry primarily serves, being on average at least a decade younger than sports bettors on traditional sportsbooks, average bet sizes are comparably smaller, and thus the volume of bets we saw to deliver this quarter’s triple-digit year over year growth was significant,” the company’s CEO further commented. “It’s our belief that we are acquiring new bettors at the beginning of their lifecycle, which we believe will lead to greater lifetime value than a mature sports bettor who is mid-way or toward the end of their lifecycle.”
The company sees new opportunities both in esports as well as traditional sports betting, and casino, through its originally developed game Rushlane. While the company’s CEO said results may fluctuate from quarter to quarter “due to the timing of major esports events,” he anticipates strong growth for the foreseeable future, including expected launches in Australia, Ontario “and other jurisdictions next year.”
“I’m confident we will continue demonstrating market leadership by having a novel product built for the next generation of sports bettors, wrapped with a modern user experience, an authentic brand, and content that uniquely resonates and is winning over our target demographic globally,” Salz commented.
In an exclusive interview with Yogonet earlier this month, Salz discussed Rivalry’s product and how it aims to cater to the needs of the newer generation. “The wrapper of entertainment goes on everything we do, from our social media to our content, and the way we build the products,” he said.
“We’re always injecting that in, because the next generation of sports bettors, which is really just under 30s, don’t bet as their parents do,” the CEO explained. “Their use of these consumer products is different, where you find that you have to inject a lot more clout and entertainment into the experience.”