Rivalry has reported net revenue of C$1.3m ($936,619) for Q1 2025, representing a 71.1% decrease when compared to the same period in 2024.
This left a net revenue margin of 2.3%, down from 4.4% the previous year, while handle for the Toronto-based operator fell 38.5% year-on-year to C$58.2m.
The company has said the quarter’s results reflect its operations under a “significantly leaner structure” that has seen its operating expenses decrease by 65% when compared to other peak periods.
Rivalry noted that operating expenses have decreased by C$1.7m per month, aided by the redundancies the company implemented in April.
Q1 2025 was also the first full quarter to take place after Rivalry’s shift towards targeting high-value and VIP players, leading to the company generating 400% more net revenue per dollar of operating expenses compared to 2024.
Average monthly deposits per player increased by 175% when compared to the period before the company’s strategic overhaul in October 2024.
The company also flagged a 115% increase in monthly deposit frequency for Q1 compared to pre-October numbers.
Monthly betting handle per user also hit an “all-time high” in March 2025, while monthly active players grew 9% within the same month.
Rivalry co-founder and CEO Steven Salz said: “Our Q1 KPIs are delivering tangible results that validate our strategic shift.
“The structural changes we implemented over the past six months — from streamlining operations and refocusing the product, to modernising our platform and concentrating on high-value players — are now clearly reflected in our KPIs.
“We’re operating more efficiently than ever, generating significantly more revenue per user, and moving closer to achieving sustainable profitability.”
Earlier this month, Rivalry announced it would undergo a strategic review whereby it would assess the most effective ways to maximise shareholder growth moving forward.
The firm is still yet to post its full-year earnings for 2024, announcing its application for a Management Cease Trade Order to allow for late filing of its annual earnings.
The Ontario Securities Commission has yet to make a decision on whether the order will be granted.
Rivalry has said that both the strategic review and its annual filings will be completed by 30 June, 2025. The business added there are no concerns over insolvency, too.
Salz added that the strategic shift has created a “healthier foundation” on which the company can grow.
He added: “We’ve built a stronger, leaner, and more focused Rivalry. Even with soft margin outcomes in Q1 2025, the model is showing strong underlying signals. As sportsbook hold normalises and our cost base becomes leaner, we believe we’re moving in the right direction.
“Our improved KPIs and disciplined cost management have created a healthier foundation. With continued operational momentum and a re-energised product, we believe we’re on a promising path forward.”
The post Rivalry reports 71% revenue slump for Q1 2025 first appeared on EGR Intel.
Toronto-based operator generates net revenue of C$1.3m while betting handle also takes a 39% hit, but CEO insists that new approach will pay dividends in the future
The post Rivalry reports 71% revenue slump for Q1 2025 first appeared on EGR Intel.