Rivalry Corp. Reports Q2 2024 Financial Results, Highlights Crypto Expansion and VIP Strategy

Strategic Focus on Crypto and VIP Players

Rivalry Corp. has pivoted its strategy to concentrate on two high-growth areas: crypto expansion, led by the introduction of Rivalry Token, and a stronger focus on VIP players.

Steven Salz, Co-Founder and CEO of Rivalry, highlighted that these efforts are coupled with tight management of working capital and a rationalization of company resources to align with these priorities. The company has achieved record margin levels for two consecutive quarters as a result of these focused initiatives.

The introduction of Rivalry Token has been a key driver of this strategy. The token, launched in a pre-release earlier this year, has already attracted high-value customers who are twice as valuable as the average user.

Salz noted that Rivalry Token has spurred the most successful reactivation campaign in the company’s history, with users showing increased engagement and activity.

The company plans to expand the use of Rivalry Token with new social-based products and games, aimed at further driving user engagement and geographic expansion.

Q2 2024 Financial Highlights

Betting Handle: The company reported a betting handle of $87.8 million for Q2 2024, a decrease of 7% from Q1 2024 and 22% from Q2 2023. This reduction is attributed to Rivalry’s focus on margin improvement, which has led to players turning over their balances less frequently.

Gross Gaming Revenue (GGR): Rivalry’s GGR for Q2 2024 was $7.4 million, down 3% from Q1 2024 and 12% from Q2 2023. Despite the decline in betting handle, the company’s efforts to improve margins resulted in a net revenue of $4.7 million, representing a 22% increase from Q2 2023.

Net Revenue Margin: The net revenue margin for Q2 2024 was 62.5%, the highest in the company’s history, reflecting Rivalry’s ongoing initiatives to enhance profitability through innovation and product adjustments.

Casino Segment Performance: The casino segment remains a strong contributor, accounting for 60% of betting handle and 24% of GGR in Q2 2024. This success is driven by the expansion of Rivalry’s casino offerings, including the original game Cash & Dash.

Net Loss: Rivalry reported a net loss of $5.4 million for Q2 2024, which includes $0.52 million in interest expense related to a convertible debenture. Excluding this, the operating loss was $4.8 million, an improvement from the $6.2 million loss reported in Q2 2023.

Cash Position: As of June 30, 2024, Rivalry held $4.6 million in cash, including $1.2 million in cash equivalents and $3.3 million in restricted cash.

Rivalry Token: A Key Driver of Growth

Rivalry Token has quickly gained traction among the company’s user base, generating $1.7 million in revenue since its pre-release in May 2024. The token has attracted a geographically diverse audience of high-value players, with users who opt-in to the token program being twice as valuable in terms of revenue and deposits compared to non-opted-in users.

More than half of Rivalry Token users are reactivated customers, contributing to the company’s most successful reactivation campaign to date. The token has also driven consistent player engagement throughout the week, with casino gaming accounting for two-thirds of the betting handle.

To further capitalize on this momentum, Rivalry launched a web-based product complementing its on-site pre-farming efforts, called a ‘faucet,’ aimed at driving connected wallets and acquiring new players. A social-based product is expected to be released in September to continue expanding Rivalry’s presence in the crypto segment.

Rivalry remains focused on its H2 2024 profitability goals and plans to enter a licensing agreement for its first-party casino games, establishing a new revenue stream for its B2B vertical. The company is also adjusting its onboarding process to reduce friction for VIP users in global markets while maintaining regulatory compliance.