Q2 2024 Rivalry Corp Earnings Call Transcript
Key Points
- Rivalry Corp (RVLCF) posted the strongest net revenue margin in company history at 62.5%, supporting 22% year-over-year growth in net revenue.
- The introduction of Rivalry Token has already generated $1.7 million in revenue and is expected to continue contributing throughout Q3 and Q4.
- The company has successfully launched higher-margin products like Same Game Combos and pre-made parlays, which have improved sportsbook hold and driven net revenue.
- Operating expenses decreased by 5% year-over-year, with significant reductions in general and administration (8%) and technology and content (31%) costs.
- Rivalry Corp (RVLCF) has maintained a strong focus on operational excellence, performance culture, and rapid iteration, enabling quick adaptation to new opportunities.
- Betting handle decreased by 22% year-over-year, from $112.2 million in Q2 2023 to $87.8 million in Q2 2024.
- Gross gaming revenue declined by 12% year-over-year, indicating pressure on overall betting activity despite margin improvements.
- The company's share price performance has not met investor expectations, reflecting potential concerns about long-term growth and profitability.
- Rivalry Corp (RVLCF) acknowledged strategic missteps in focusing too much on low-value players, which has elongated the path to profitability.
- Net loss for the quarter was $5.8 million, a smaller improvement than expected, partly due to $0.5 million in interest expense on the convertible debenture.
Good morning, ladies and gentlemen, and welcome to the Rivalry Q2 2024 Conference Call. (Operator Instructions) This call is being recorded on Thursday, August 29, 2024.
I would now like to end the conference over to John Vincic. Please go ahead.
Thank you, operator, and good morning, everyone. Our speakers on today's call will be Steven Salz, Co-Founder and Chief Executive Officer of Rivalry Corp; and Demi Abidogun-Benson, Interim Chief Financial Officer.
Before we begin, I would like to remind listeners that certain statements made during this conference call presentation may constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws. These statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Rivalry Corp. and its subsidiary entities or the industry in which it operates to be materially different from any future results, performance, or
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