NorthStar Gaming reported that its net loss in Q1 2024 was reduced due to an increase of revenue and lower expenditure. The operator also announced the appointment of Chin Dhushenthen, as Chief Financial Officer on a permanent basis.
Revenue in the three months to 31 March hit CA$5.9m (PS3.4m/EUR4.0m/US$4.3m). NorthStar reported $3.5m in the first quarter of last year, a 63.9% increase.
In Q1 last year, NorthStar Gaming completed the reverse acquisition of Baden Resources. Baden, the Canadian real estate business Midway Property owned by Baden, merged with NorthStar Gaming Inc. and became a fully-owned subsidiary of Baden.
In Q1 of this year, the takeover and other factors helped to boost revenue year over year. NorthStar will be available in all Canadian provinces and territoires in October 2023. Previously, it was only accessible in Ontario.
NorthStar also flagged “notable improvements” across all of its key performance metrics. This includes a 42.0% growth in active players and a 9.0% decrease in the cost per customer acquisition (CPA).
Michael Moskowitz, CEO and Chair of NorthStar, said that the recent renewal of a strategic marketing agreement, with Playtech Software which contributes services worth up to $4.0m until October 2024 puts NorthStar in an excellent position to grow.
Moskowitz stated, “In the first quarter of this year we maintained our strong growth pattern over last year. This was highlighted by an increase in total bets.” Our premium brand experience, coupled with our growing customer base and awareness of the company’s products and services is driving higher retention rates and loyalty.
These positive trends allow us to use our marketing budgets more effectively. The business will then be able to operate more efficiently as it grows.
Revenues increase in Q1 due to record wagers
Looking at Q1 numbers, gaming revenue accounted for $5.8m, an increase of 61.1%. The gaming revenue comes from sports betting as well as casino.
Slapshot Media, which was purchased in 2023, accounted for the remaining $159.327. The deal was not completed until Q1 of last year. Therefore, the figures aren’t comparable.
NorthStar said that its revenue also benefited from the growth of NorthStar across Canada. The total amount of money spent on Northstarbets.ca grew by 55.5%, to $218.0 million.
In terms of spending, revenues increased by 83.3%, to $2.2m. Operator participant fees and service provider fees also rose. Operating expenses, however, were down by 21.4%, to $7.7m. Last year, $2.8m was spent on listing costs associated with the TSX Venture Exchange’s public listing.
The financial costs reached $976,710. This means that the pre-tax loss was $6.5m in 2023, a decrease of 25.3%. NorthStar has not paid tax this year nor last. Therefore, the comprehensive net loss was also $6.5m.
Moskowitz stated that “our team makes regular improvements to the service we offer, including the launch of the VIP Elite Strategy aimed at our most active players and those who contribute a significant share of results.”
We have exciting activities to create demand planned in the next few months, along with new innovations for our platform and contents. “We remain committed to unlocking value and we are enthusiastic about the possibilities ahead in 2024.”
NorthStar Welcomes Dhushenthen to the CFO position
NorthStar announced today that Dhushenthen, the interim CFO will take over this role permanently.
Dhushenthen is the interim CFO, having been appointed in November after Jennifer Barber left. He previously served as vice president of finance and compliance for the operator.
Dhushenthen worked in various financial roles for CAPREIT (a Canadian housing provider) prior to joining NorthStar.
Moskowitz stated that “Chin demonstrated excellent leadership in the finance team, and excellent knowledge about our financial reporting and compliance systems.” I look forward to seeing his contributions continue.
