Financial Results Highlight Shift to Crypto-Betting
Rivalry, a known name in the esports and sports betting world, has made a significant announcement concerning its financial performance for the third quarter of 2024. The company reported a notable 51% rise in average net revenue per user, a record-breaking figure for the firm. Despite this individual user revenue increase, Rivalry experienced a drop in total net revenue for the quarter, earning just under CAD $3 million, compared to CAD $4 million in the same quarter the previous year.
Betting Handle Performance
In the latest financial report, Rivalry disclosed that its betting handle for Q3 2024 stood at CAD $79.9 million. This figure indicates a decline from the previous year, where the betting handle reached CAD $105.7 million during the same period. Despite the overall dip, the company’s casino offerings emerged as a standout, accounting for 62% of its betting handle and contributing to 40% of the net revenue. These figures marked a respective 14% and 2% increase from the previous year.
Crypto-Betting and Product Overhaul
Rivalry has been making strategic moves to position itself strongly in the crypto-betting market. Earlier in the year, the company launched the ‘Rivalry Token,’ marking its entry into the cryptocurrency space. This move was part of a broader strategy that included substantial product redesigns and a rebranding effort focused on crypto-betting. In the company’s report, it was noted that users connected through crypto wallets generated 200% more revenue than those using traditional payment methods.
Financial Losses and Cost Management
Despite the advances in certain areas, Rivalry reported a net loss of CAD $5.9 million for Q3 2024. This figure is comparable to the CAD $5.6 million loss reported in the same period last year. The company managed to slightly reduce its marketing, advertising, and promotional expenses from CAD $3.1 million to CAD $2.1 million, which helped mitigate the loss to some extent.
Strategic Partnerships and Esports Involvement
Rivalry has maintained involvement in the esports sector, albeit at a reduced scale compared to previous years. The company collaborated with Blacklist International until September 2024 on a Dota 2 team. Additionally, Rivalry organized a Counter-Strike 2 LAN event in partnership with commentator Mohan ‘Launders’ Govindasamy, showcasing its continued commitment to esports.
CEO’s Vision and Future Outlook
Steven Salz, Co-Founder and CEO of Rivalry, emphasized the company’s evolution in response to the changing landscape of online gambling where cryptocurrency is increasingly becoming a preferred payment method. Salz highlighted that these efforts align with the expectations of modern players who are driving industry-wide changes. He expressed confidence in Rivalry’s strategic direction as the company embraces a leaner operational model poised for future growth.
Rivalry’s latest financial results and strategic shifts underscore its commitment to adapting to market trends and enhancing its product offerings. With a focus on crypto-betting and maintaining a presence in esports, the company aims to leverage its strengths and address challenges to achieve sustainable growth.
