Sports betting and media company Rivalry Corp. announced Wednesday it will be receiving CAD10 million ($7.3 million) in new strategic financing through the issuance of new stock. The business’ announcement of the new funding comes hot on the heels of Rivalry’s preliminary full-year and Q1 results, in which the company reported an all-time high quarterly revenue of CAD 12 million ($8.8 million).
Rivalry will raise the financing by issuing up to 6,666,666 subordinate voting shares at a price of CAD 1.50 per share. The business said that online bookmaker Pinnacle, alongside a number of other technology and payments stakeholders, would be leading the financing round.
Steven Salz, Rivalry Co-Founder and CEO, said that the terms and strategic value of the stakeholders taking part in the round represented “a vote of confidence” in the company’s team and market strategy.
“Our playbook is built around a generational opportunity to capture and engage a next-generation audience through world-class creative, proprietary, and engaging products and market-leading brand equity in esports. We are growing rapidly with a successful strategy in place and a talented team behind us, and with this funding, we anticipate both continuing our pace of growth and our trend toward profitability,” the executive commented.
1/ 🚀We just announced the highest quality results since $RVLY‘s founding, alongside a strategic financing round at a premium, led by a world class industry strategic alongside other stakeholders, validating our multi-yr momentum and path to profitability. https://t.co/GwCAJEbRrY
— Steven Salz (@StevenSalz) April 26, 2023
The business said that the proceeds of the offering would go towards enabling Rivalry to “accelerate” its operational objectives and pursue strategic growth opportunities.
For her part, Paris Smith, Pinnacle CEO, noted: “As a leader and innovator in online betting, Pinnacle is constantly looking for like-minded partners to help further grow the industry and our global footprint.”
“That is what led us to Rivalry, and it is impressive how in a short period of time, they have carved out a powerfully unique position in the field of online betting,” the executive commented.
Paris Smith, Pinnacle CEO
Rivalry reported that revenue for 2022 was CAD 26.6 million ($19.5 million), a 140% increase from the CAD 11 million the company announced in 2021. The business earned this revenue on a betting handle of CAD 232.8 million ($171 million), a 198% rise compared to the CAD 78.2 million the company achieved in 2021.
However, the firm also announced a CAD 31.1 million ($22.8 million) net loss, a 28.0% increase compared to the CAD 24.2 million the company recorded in 2021. As of 31 December 2022, Rivalry had CAD 16.4 million ($12 million) in cash and no debt.
Turning to Q1 results, the business reported a betting handle of CAD 120.2 million ($88.3 million) for the three-month period ending 31 March, a 99% increase from the CAD 80 million the company recorded in the same period of the previous year.
On these stakes, Rivalry announced an all-time quarterly high revenue total of CAD 12 million ($8.8 million), a 251% increase from the CAD 4.8 million the business achieved in 2021. The company’s net loss stood at CAD 3.5 million ($2.6 million) for the quarter.
7/ Our outlook for 2023 is equally exciting. I’m confident we will continue to deliver across all KPI’s, put out more world class creative, original product, and make clear why Rivalry is a market leader in next gen betting… all while continuing on our path to profitability.
— Steven Salz (@StevenSalz) April 26, 2023
“Our market strategy and operational excellence continue to build upon consecutive record-setting quarters, driving a strong finish to the year and a robust Q1 while simultaneously demonstrating sequential narrowing losses on our path to profitability,” said Salz.
“Underpinning our growth is significant brand loyalty among the millennial and Gen Z audience and true product innovation in online betting, enabling every marketing dollar to go further, enhancing retention, and creating a distinctly unique platform. Rivalry continues to be economically rewarded for taking an inventive approach to the betting experience and tailoring it for a demographic with unique consumption habits,” the CEO concluded.