Gross gaming revenue for the three months ending 30 September was CA$8.4 million (£4.7 million/€5.7 million/US$6.0 million). This represents a 52.7% increase compared to $5.5 million for NorthStar in [Q3 last year](https://igamingbusiness.com/finance/quarterly-results/revenue-rockets-at-northstar-gaming-in-q3/).
NorthStar, which [released the results yesterday (27 November)](https://www.northstargaming.ca/financial/q3-financial-statement-2024/), also reported revenue after deducting bonuses, promotional costs, and free bets. Including revenue from other managed services, this resulted in $6.8 million in operating revenue, up 44.7%.
The operator generates revenue from its Northstarbets.ca website. During Q3, total wagers placed through the site reached $234.0 million, a rise of 69.6% from last year.
## Q3 Costs Reduced Despite Higher Marketing Spend
Operating costs were reduced by 5.2% to $5.5 million, despite an increase in marketing and general and administrative expenses. NorthStar benefitted from lower share-based compensation expenses, which last year amounted to $1.7 million.
Following $213,710 in finance costs, pre-tax loss was $3.1 million, an improvement from last year’s $4.2 million. Since NorthStar did not pay income tax in Q3, as it did not in the same quarter last year, the bottom-line net loss figures matched the pre-tax values.
“Our consistent revenue growth and improved economies of scale have enabled gross margin to fully cover overhead costs—a significant milestone in our journey toward profitability,” said NorthStar chair and CEO Michael Moskowitz.
“Additionally, marketing expenditures as a percentage of revenue have declined substantially, dropping from two-thirds last year to roughly half year-to-date, further demonstrating our continually improving operational efficiency and strategic focus.”
## Similar Story for the Year-to-Date at NorthStar
For the year-to-date, gross gaming revenue for the nine months to 30 September was $24.1 million, surpassing last year’s total by 56.5%.
After accounting for bonuses and including revenue from other managed services, total revenue hit $20.2 million, a rise of 55.4%. Total wagers on Northstarbets.ca were also 54.6% higher at $677.0 million.
Operating costs were reduced by 5.3% to $21.4 million, again despite higher marketing expenses. After $930,435 in finance expenses, pre-tax loss was $14.3 million, improved from the $18.0 million reported last year.
In terms of bottom line, no tax was payable during the period, so the net loss stood at $14.3 million for the year-to-date.
## NorthStar Eyes Further Growth
Looking ahead, NorthStar reported that management is working to secure additional funding to support growth. The company stated that it is “confident” about accessing this capital, with an update expected in the coming weeks.
FY24 will be the first full calendar year of the enlarged NorthStar business. Last year in Q1, NorthStar [completed the reverse takeover of Baden Resources](https://igamingbusiness.com/strategy/ma/northstar-gaming-completes-reverse-takeover/). Baden, which owns Canadian property business Midway Property, merged with NorthStar Gaming Inc and a wholly owned subsidiary of Baden.
“The marketing investments and product launches we executed in Q3 have set us up for a strong finish to the year, as the fourth quarter is typically a seasonally robust period,” Moskowitz said.
“With the continued momentum in our business and operating leverage driving improved financial results, we are highly optimistic about our ability to deliver significant shareholder value in 2025.”