Esports betting operator Rivalry reported record revenue of $8.7 million in the third quarter, marking a 22.5% increase from the previous year. Despite this, the company remained at a net loss for the quarter, with comprehensive loss widening to $6.0 million.

The main source of revenue for Rivalry in Q3 was its sportsbook, which saw a 42.6% increase in revenue to $8.7 million. Revenue from the casino business also grew by 50.0% to $1.5 million. Total betting handle across the company’s offerings jumped 50.4% to $105.7 million, with $50.4 million coming from casino gaming.

However, increased operating costs and foreign exchange losses offset the revenue hike, resulting in an operating loss of $5.3 million for the quarter. The company also reported a net loss of $5.6 million, despite a decrease in foreign exchange losses compared to the previous year. Overall, comprehensive loss for the quarter was $6.0 million.

Looking at the year-to-date performance, Rivalry posted $29.2 million in revenue for the nine months to 30 September, a 69.8% increase from the previous year. Sportsbook operations accounted for $24.3 million of this total, while gaming revenue reached $4.9 million.

Despite higher operating expenses and cost of revenue, the company’s revenue growth resulted in a decrease in operating loss from $18.8 million to $15.0 million. Rivalry reported a net loss of $15.2 million for the period, with comprehensive loss hitting $16.7 million.

Reflecting on the performance in Q3, co-founder and CEO Steven Salz praised Rivalry for achieving record revenue growth amid a challenging capital market environment. He expressed confidence in the company’s future, reaffirming their profitability guidance for the first half of 2024.

Salz highlighted Rivalry’s proven operating leverage and improving sportsbook margin profile as factors contributing to the company’s growth potential. He also pointed to the recent capital infusion as a catalyst for future growth and profitability.

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