Rivalry loses $5.2M in Q1 2022

Esports betting company Rivalry has posted its financial performance for the first quarter of 2022.

Brass tacks: The report covers the three-month period ending March 21, 2022.

• Rivalry posted a betting handle — the amount of money wagered by bettors — of $31.7M ($40.2M CAD) for the quarter, an increase of 273% from Q1 2021 and 62% from Q4 2021.
• Total revenue reached $3.8M ($4.8M CAD) with a cost of revenues of $3.2M ($4.1M CAD), leaving a gross profit of $537,587 ($682,230 CAD).
• Operating expenses totaled $5.7M ($7.2M CAD), including marketing and advertising costs of $2.4M ($3.1M CAD).
• Net loss of $5.2M ($6.6M CAD) for the period, up from $1.8M ($2.3M CAD) year-on-year.

The company: Q1 2022 was a busy period for the betting company.

• Rivalry added mobile esports to its betting offering in March 2022, allowing customers to place bets on titles such as Call of Duty: Mobile, Free Fire, and League of Legends: Wild Rift.
• It was awarded a sports bookmarker license by the Northern Territory Racing Commission, so it can legally operate in Australia, on February 9.
• “The strength we saw during the first quarter is evidence of strong momentum in the business," said Rivalry CEO Steven Salz. "We expect to continue delivering considerable year-over-year growth throughout 2022."
• In 2021, the company posted total revenue of $8.6M ($11.1M CAD) and a net loss of $19.2M ($24.7M CAD). It had $27.7M ($35.5M CAD) in cash and no debt at the end of the year.