This new series will prepare you for 2024’s biggest show with the most recent developments from 2023.
We all know that the esports industry has seen a rapid rise in popularity since 2020. The market began to focus on just three major players: Entain Entertainment Group, Rivalry and Esports Entertainment Group.
This article will show that Entain, Esports Entertainment Group, and Rivalry have all had mixed fortunes in 2023.
Entain Esports Entertainment Group
Both Entain, and Unikrn had big plans for the year 2023. Entain launched its brand again in December 2022 with the goal of global dominance.
But despite all the fanfare surrounding the launch, it has been 12 months since the relaunch, and not much progress has been made. Entain has been so frustrated that, in a statement sent to iGB recently, it announced that Unikrn’s direct-to consumer operations would be reduced.
After a turbulent 2018, Rivalry has again surged to the top.
The company is in “significant trouble” since it acknowledged in May 2022 that it was “uncertain” if it would be able to stay in business another year. After EEG failed to pay on its convertible notes in 2021, the company’s future was in the hands a creditor in October 2022.
EEG announced in February that it had sold its Bethard sportsbook and online casino business, totaling EUR9.5 million.
We haven’t noticed any changes since then. The net loss has increased despite the significant cost reductions. Igelman is optimistic, however. We might see a rebound in 2024.
Rivalry is on the rise
Onto Rivalry. This super-cool brand is definitely catching up with Entain and EEG and has surged forward. Pinnacle was one of its main investors for the 2023 PS5,9m funding round.
Toronto’s operator, has exceeded all revenue expectations so far in this year. Its unique position on the market also makes it the brand of esports for Gen Z users and millennials.
It is clear that catering to this market pays off – 80% of the customer base claims to be younger than 30.
The “down with kids” campaign has been filled with memes, internet-speak and the most sought after influencers.
Profits of rivalry: The last step towards dominance
In its most recent earnings report, released at the end November, the company still struggles to make a profit. We believe that this will help it stay on top of things in the coming year.
If we look at its finances, it is clear that the company continued to lose money in Q3 even though they had a record revenue of 8,7m dollars (PS6,9m/EUR7.9m). The business’s overall loss also increased.
It wants to take the market and make it its own. This will undoubtedly be the biggest challenge for the company in the coming year.
In Q3, despite a record-breaking revenue, higher operating costs and a foreign exchange loss cancelled out the increase in revenue. The result was that the comprehensive loss in Q3 grew to $6m from $5.6m.
Steven Salz, co-founder of Rivalry and its CEO, praised the company’s revenue growth in Q3 despite a challenging capital market environment. This will help the company grow in Q4 as well as beyond.
Rivalry, I’m coming to get you.
