Rivalry pledges market launches in 2023 following October turn to profit
Esports betting operator Rivalry will enter new markets in 2023 as it aims to become the leader in betting and gaming for “the next generation”.
In a business update sent to shareholders on 18 January, the operator set out some of its key achievements in 2022 as well as its plans for the coming 12 months.
2022: A good year for Rivalry
Not least among Rivalry’s 2022 achievements was a turn to profit for the month of October, which the firm described as an early indicator of “sustainable and profitable growth,” and “a positive sign of what’s to come as the business continues to execute its strategic priorities.”
That profit was driven by an average month-on-month revenue increase of 32% for the first 10 months of 2022.
At the same time, the firm was able to reduce its bonus and promotional spend relative to revenue by over 50% year-on-year, due to a combination of its low-cost customer acquisition strategy, and a diversified product portfolio helping to reduce the impact of esports seasonality.
How Rivalry does it
The operator said in its business update that its brand engagement and product strategies have helped deliver below-market cost customer acquisition, thus reducing its reliance on additional marketing spend for growth.
“We scale through word of mouth and organic market entrenchment of brand equity that allows us to operate without a dependency on excess bonusing and player subsidies,” the business said.
That strategy is driven by video gaming and internet culture, it said, allowing the operator “to engage with a deeply valuable and nuanced demographic of users that legacy operators aren’t equipped to serve.”
It added: “There is tremendous value gained by participating in these communities and cultures, building lasting brand affinity among gaming fans who are quickly emerging as the consumer economy of the future, and similarly by attaching ourselves to the pervasiveness and virality of the internet.”
The firm’s meme-filled corporate website is evidence of this approach.
Plans for 2023
Initiatives to look out for this year include expanding its esports offering with new titles and markets to deepen its core product and attract new customers. For the sake of reference, 90% of Rivalry’s sportsbook handle came from esports betting in 2022.
The firm will also continue to evolve its proprietary Casino.exe platform, with the release of additional in-house and third-party games.
Rivalry also expects to launch a proprietary mobile app in its regulated markets to increase the accessibility of its product, while expanding into new geographies to increase the size of its addressable market and customer base.
Further, the firm pledged to expand its content and creator partner programme to deepen its customer reach and engagement, and to continue growing its investor base through proactive capital markets outreach.
In conclusion, Rivalry CEO Steven Salz said: “I’m extremely proud of the differentiated approach Rivalry has taken from day one and what it has enabled us to achieve, creating a truly distinct product and brand that is driving operating leverage and bearing fruit across the business.
“As we move into 2023, we’re eager to continue demonstrating the same operational excellence which has enabled us to stand out in a deeply competitive industry.”