Esports betting operator and media business Rivalry announced it will be receiving CA$10m (US$7.3m/EUR6.6m/PS5.9m) in new strategic financing through the issuance of new stock.
Rivalry plans to raise financing through the issuance of up 6,666,666 voting subordinate shares, priced at $1.50 each. Pinnacle online betting company, along with other stakeholders in technology and payment, will be part of the funding round, according to Rivalry.
Steven Salz, CEO of Rivalry and co-founder of Rivalry, said the strategic and financial value that stakeholders brought to the table represented “a vote” of confidence in both the team of Rivalry and its market strategy.
Salz said, “Our playbook was built to engage and capture a new generation of audiences through innovative, engaging and proprietary products and market-leading brand equity within esports.”
We are growing quickly with our successful strategy and talented team. With this funding we expect to continue our growth pace and trend towards profitability.
According to the business, the money raised would be used by Rivalry in order to achieve its strategic goals and “accelerate”.
Paris Smith, Pinnacle’s CEO, said that Pinnacle, as a leading innovator and leader in the online gambling industry, is always looking for partners who share its vision to grow this sector and expand our global presence. This is why we chose Rivalry. It is amazing how they’ve managed to create a unique and powerful position within the online betting industry in such a short time.
Rivalry announced its preliminary Q1 and full-year results just a few days after the announcement. The company had reported a record quarterly revenue, which was $12m.
Rivalry Results
Rivalry announced that its revenue for 2022 was $26.6m, up 140% from $11.0m in 2021. This revenue was generated on $232.8m in betting handles – an increase of 198% compared with the $78.2m that the business achieved in 2021.
The company made a net loss of $31.1m, which is a 28.0% rise compared with the $24.2m it recorded in 2021. Rivalry held $16.4m cash at the end of December 2022 and had no debt.
The company reported that it had a wagering handle of $120.2m in its first quarter, ending on 31st March. This is a 99 percent increase over the $80.0m they recorded during the same time period last year.
Rivalry has announced a record-breaking quarterly revenue of $12.0m. This is a 251% rise from $4.8m in 2021.
Net loss for the company was $3.5m.
Salz said, “Our market strategies and operational excellence continue to build on consecutive record-setting quarterly results. This has led to a solid finish of the year as well as a robust first quarter. We have also demonstrated sequentially narrowing losses in our journey to profitability.”
The growth of our company is largely due to the brand loyalty that millennials and Gen Z have for us, and also true innovation within online betting. This allows every dollar spent on marketing dollars to be used more efficiently, while improving retention, and creating an entirely unique platform.
The innovative approach that Rivalry has taken to betting and its tailoring to a specific demographic who have unique habits of consumption is being economically rewarded.
