Internationally regulated sports betting and media company, Rivalry Corp.'s Co-Founder and CEO Steven Salz, issued a letter Tuesday summarizing recent progress and outlining strategic priorities for 2022.
Addressing the shareholders, Salz started by highlighting 2021’s milestones for the growing company, which, according to the CEO, demonstrates “discipline and execution”.
During 2021, the company perceived an increased revenue by more than 600% in a year-over-year comparison to CAD8.9 million ($7M) as of Q3 2021 on a year-to-date basis. Betting handle grew over 180% since 2020 to CAD66.1 million ($52M) through October 2021, with an implied annual run rate as of Q3 2021 of nearly CAD100 million.
Customer registrations increased to approximately 600,000 through October 2021, up from 350,000 in 2020.
Salz also pointed out that the company has developed all its technology in house, and pioneered a new gaming category of Massive Multiplayer Online Gambling Games with their proprietary title Rushlane. This cyberpunk-themed multiplayer race, merges social gaming and casino with video game quality 3D graphics. It is specifically built for the next generation esports audience, and the first of many upcoming plans for the genre.
During 2021, the company also submitted an application to the AGCO to become a fully registered operator of internet gaming and sports betting in Ontario, which is the largest province in the country, which has opened up a licensing process back in September.
Rivalry also commenced trading via direct listing on the TSX Venture Exchange on October 5.
In a recent interview with Yogonet, the company's CEO explained: "Like most companies that trade on the stock market, if the stocks start to perform well, and more people get interested, and investor banks start showing up with different opportunities, if that were to come our way under the right terms, we would probably take more money just to continue building the balance sheet. But right now, we are staying focused on our operations and building out the business the right way".
Currently, a big portion of the company's money is being reinvested into growth and marketing.
“Our ambition does not end there. We are confident 2022 will be another record year of accomplishments. The investment we will be making in all key areas of the business will likely exceed the past three years combined”, Salz stated.
Rivalry expects to launch both in Ontario and in Australia - which will be the company's first regulated market in which it will go live -, while putting out new content and media of their proprietary technology. The company also expects to launch in new geographies under its existing Isle of Man license.
As expressed by Salz, “backing this effort there is a fortified balance sheet with approximately $41.3 million of cash and no debt”, as the company reported a record Q3 revenue and betting handle which amounted to $18.3 million, up 141% from $7.6 million in a year-over-year comparison. Revenue was $2.9 million, up $2.5 million or 679% compared to the same period in 2020.
The Toronto-based operator completed its listing on the TSX Venture Exchange shortly after the record quarter, along with zero debt and followed by an all-time record performance in October, the company was well-positioned “for a strong 2022”.
Salz expressed that the company is currently executing against a generational opportunity, with a clear vision of becoming “the leader in next gen sports betting and entertainment globally”, and to have “the most engaged brand and portfolio of IP (games, content, creators and more) that is revered and trusted”.
“We expect that success on these key priorities will make Rivalry transportable into new categories beyond betting. Why? Because we have a loyal user base and a foundation of trust with under 30’s in a regulated framework, fully KYC’d, with funded wallets, who are deeply engaged in our universe”, the CEO stated.
“I’m confident Rivalry as a company, and a collection of talented individuals understands better than any of our peers how to navigate and participate in this culture. It is an inevitable generational tidal wave that we are focusing all our efforts on acquiring, retaining, and entertaining”, he said. “The growth and market leadership advantages we have created are a product of our disciplined execution on hundreds of large and small details that we deliver as a simple and cohesive user experience. This is how we are building brand equity with long-term sustainable value”.
“In 2022 we are committed to expanding our brand leadership not just in next gen sports betting globally, but in entertainment in this rapidly evolving internet culture that we are part of. It’s my belief that this intersection we live in, and the demographic we are serving, represents one of the biggest opportunities of the coming decade”.