Toronto-listed iGaming company FansUnite reported positive EBITDA of C$4.3m in Q2 2023, compared to a C$11.1m EBITDA loss in the prior-year comparative period.
Reporting its Q2 financial results, the company revealed that it generated revenue of C$5.3m during the quarter, an increase of 13.7% year-on-year.
The cost of revenue was reported at C$2m, down from C$2.8m, giving the business a gross margin of C$3.3m, up from C$1.9m in Q2 2022.
Still, the business reported a total comprehensive loss for the quarter of C$1.3m, although that represents a significant closing of the gap towards profitability compared to the C$11.6m comprehensive loss it reported in Q2 2022.
The C$5.5m sale of FansUnite’s B2C McBookie brand in May generated a gain of C$4.4m for the business, it said, while the C$10m sale of its Chameleon gaming platform to Betr generated a gain on sale of C$3.1m.
“We are excited to announce a significant increase in revenue and gross margins during the second quarter of fiscal 2023,” said FansUnite CEO Scott Burton.
“During the quarter, we saw a 14% increase in revenues year-over-year while our overall gross margins exceeded 60% due to our focus on higher margin operations. This renewed focus allowed us to record an EBITDA of C$4.3m during the quarter which was up from a loss of C$11.1m during the same quarter last year.
“Following the sale of McBookie and the Chameleon iGaming Platform, we will focus more on growing business segments that produce significant cash flow.
“We intend to achieve this goal by scaling our affiliate business segment, led by Betting Hero, which has generated substantial revenue and high gross margins as well as identifying more opportunities to improve our operational and financial efficiency.”
ASX-listed operator PointsBet has officially opened a new headquarters for its Canadian operations in downtown Toronto.
The office will serve as an innovation hub, the operator said, with a focus on product development and technology recruitment.
PointsBet’s Canadian operations generated around A$1.7m in net win for the business in the quarter ending September 2022, through a combination of sports betting and iGaming.
While Australian earnings continue to dominate PointsBet’s balance sheet, the business has shown itself to be taking opportunities in North America increasingly seriously.
PointsBet Canada CEO Scott Vanderwel: “Our mission since the very beginning has been to build a Canadian sportsbook, with Canadian employees, for the Canadian market.”
PointsBet Canada has made a serious commitment to the Canadian market, the operator said, with partnerships rooted in Canadian sport including with Maple Leaf Sports & Entertainment, the Ottawa Redblacks, NHL Alumni Association and others.
“Our mission since the very beginning has been to build a Canadian sportsbook, with Canadian employees, for the Canadian market,” said PointsBet Canada CEO Scott Vanderwel.
“We believe that Ontario has the talent and workforce that can help us be at the forefront of iGaming in Canada.”
Trevor Dauphinee, CEO of Invest Ontario, added: “I congratulate PointsBet on the opening of their new Canadian headquarters and welcome them to Ontario. This investment supports the growth of Ontario’s technology and iGaming ecosystems.
Invest Ontario CEO Trevor Dauphinee: “Ontario’s strength as an economic powerhouse backed by a highly-skilled workforce is a competitive advantage that industry leaders like PointsBet recognise.”
“Ontario’s strength as an economic powerhouse backed by a highly-skilled workforce is a competitive advantage that industry leaders like PointsBet recognise.”
Nic Sulsky, chief commercial officer at PointsBet Canada, said: “PointsBet Canada is not just talking the talk, we’re walking the walk. Whether it is supporting the sports and teams that are synonymous with Canada’s identity or investing in the jobs of tomorrow, we are Team Canada and proud to wear the maple leaf.”
PointsBet currently has over 50 employees in Canada directly supporting its Canadian operations and other teams across the world.
Ontario is said to be a leader in several areas of technology including artificial intelligence, cybersecurity, fintech and digital media.
Esports-focused betting operator Rivalry has reported a 93% year-on-year rise in revenue for Q3 2022 to reach a quarterly record of C$7.1m.
The Toronto-listed business also announced record betting handle of C$70.3m during the quarter, representing an annual increase of 203%.
Q3 gross profit came in at C$2.1m, up from C$0.6m in the same period of last year.
According to the company, 82% of active users in Q3 were under the age of 30, while more than 90% of sportsbook handle was derived from esports betting during the period.
The record results were driven by revenue from esports betting during a period of “several tentpole international events”, according to Rivalry CEO Steven Salz.
“Our differentiated strategy and product offering is key in connecting with a demographic that legacy operators aren’t equipped to serve,” said Salz.
“We’ve created brand equity, loyalty, and consumer engagement that continue to guide our successful player acquisition and retention strategy, enhance customer unit economics, and highlight the operating leverage within the business that increases as we scale,” he added.
Rivalry ended Q3 with C$23m in cash on the balance sheet and no debt, as of 30 September.
Rivalry CEO Steven Salz: “Our differentiated strategy and product offering is key in connecting with a demographic that legacy operators aren’t equipped to serve.”
Rivalry’s strong performance continued after the reporting period into October, which became the first month to generate a positive net profit for the company.
October 2022 also marked a single-month record for Rivalry for both betting handle (C$37.2m) and revenue (C$4.5m).
Salz said the October profit was proof the company’s strategy to “prioritise sustainable user economics and careful capital allocation” was indeed beginning to pay off.
“While October will likely set our high benchmark in 2022 as seasonally one of the strongest months, we believe our +20% month-over-month average growth over the past year, successful casino product expansion, and increased market share ownership of esports betting positively signals directionally as to where we are headed on underlying profitability in the future,” he added.
Wow, sizeable buyer in $RVLY today. +750k shares already traded 🧐
— Aaron Salz (@StoicAdvisory) November 21, 2022
Rivalry shares received a boost in November after the firm unveiled its new proprietary casino platform.
The software is called Casino.exe and was styled with a retro PC gaming look to appeal to Rivalry’s meme-loving target audience of Millennial and Gen Z consumers.