Rivalry’s Q1 Success Showcases Impact of Strategic Restructuring
Rivalry’s Q1 Performance Demonstrates Strong Progress
Rivalry, a leading sports betting and media company, has revealed its Q1 results, underscoring notable strides following a comprehensive restructuring. The company’s leadership celebrated the milestone as the full realization of its revamped business model, marking a new era for Rivalry.
Significant Cost Reductions and Improved Financial Metrics
Through extensive restructuring efforts, Rivalry managed to cut operating expenses in Q1 by 58% compared to the same period last year, bringing costs down to CAD 4 million (approximately $2.9 million). Concurrently, the net loss shrank by 43%, totaling CAD 10 million ($7.3 million).
It is important to note that a large share of these expenses stemmed from one-time or non-operational items, including audit fees, regulatory charges, and legacy liabilities from earlier periods.
Enhanced User Engagement and Revenue Growth
Rivalry’s marketing expenses for the quarter were modest at CAD 175,000 ($127,000). The company reported net revenue of CAD 1.3 million ($950,000), aligning with earlier projections. Key performance indicators showed a 49% year-over-year increase in net revenue per player and an impressive 210% rise over the historical average predating Rivalry’s transformation. This was accompanied by a 7% quarter-over-quarter increase in wagers per player.
Additionally, the average monthly deposit amount per player was more than 175% higher than historical levels in Q1 and grew another 28% in Q2. The frequency of monthly deposits per player also rose substantially, increasing by 115% in Q1 compared to historical figures, with an added 22% boost in Q2.
Lower Breakeven Revenue Reflects Cost Optimization
The breakeven net revenue for Rivalry has now decreased to approximately $600,000 per month. This reduction highlights the company’s thorough transformation and effective cost management strategies.
Overhauling the Business Model for Greater Efficiency
The transformation initiative kicked off in 2024, focusing on attracting higher-value users, rigorous cost control, enhanced products, and flawless strategy execution across all business operations. Q1 marked the first full quarter under this new model.
Rivalry implemented advanced Business Intelligence tools to improve the identification, segmentation, and servicing of VIP customers. The product offering was upgraded alongside the deployment of proprietary BI systems and enhanced customer relationship management platforms.
Steven Salz, Rivalry’s CEO, described the new operating model as both lean and highly effective.
“This quarter signals the full launch of Rivalry 2.0 — streamlined, sharper, and with a stronger structure. We’ve built the business foundation around efficient acquisition, valuable users, and proprietary products, and the results are already apparent.”
— Steven Salz, CEO of Rivalry
Salz emphasized that Rivalry has evolved into a scalable enterprise ready for growth.
Future Outlook: Lowering Breakeven and Expanding Flexibility
Looking ahead to the second half of the year, Rivalry plans to roll out several initiatives, including a new promotional engine, additional product features and mechanics, and enhanced CRM activities.
The company also aims to further reduce its breakeven point and boost operational flexibility moving forward.