The company’s Chair and CEO, Michael Moskowitz, announced a record quarter with strong growth in revenue and gross margin, exceeding 60% in both categories. He emphasized the efficient scaling of the business model, with expenses being outpaced by top-line growth.
In the second quarter ending June 30, 2024, the company reported:
– Revenue of $7.5 million, a 61% increase from the same period in 2023.
– Total Wagers at Northstarbets.ca reached $225.5 million, a 41% increase from the previous year.
– Gross Gaming Revenue at NorthStarbets.ca was $8.7 million, a 58% increase from the second quarter of 2023.
– Gross Margin was $3.2 million, representing a 69% increase from the previous year and accounting for approximately 42% of revenue.
For the six-month period ended June 30, 2024, the company reported:
– Revenue totaling $13.4 million, a 62% increase from the same period in 2023.
– Total Wagers at Northstarbets.ca reaching $443.5 million, a 48% increase from the previous year.
– Gross Gaming Revenue at NorthStarbets.ca amounting to $16.3 million, a 65% increase from the first half of 2023.
– Gross Margin of $5.4 million, marking a 77% increase from the same period in the previous year and representing approximately 40% of revenue.
Recent operating highlights include:
– A 48% increase in active players in Q2 2024, with a decline of 12% in cost per acquisition of a customer (CPA) and a 7% rise in estimated 12-month player values.
– Outpacing industry-wide growth rates in Total Wagers and Gross Gaming Revenue compared to iGaming Ontario’s reported figures for Q2 2024.
– Renewal of a strategic marketing agreement with Playtech Software Limited to accelerate player acquisition in Ontario.
– Securing $3 million in short-term financing and celebrating the second anniversary of the NorthStar Bets platform.
– Continued enhancements to the “Sports Insights 2.0” content vertical, including premium MLB team and player stats.
– A successful EURO/Copa campaign in July and the launch of the Blackjack Open tournament in August.
Looking ahead, Mr. Moskowitz expressed optimism about the company’s growth prospects based on the strong performance and ongoing innovation. A Corporate Update Webinar is scheduled for August 14, 2024, where investors and interested parties can learn more about the company’s Q2 earnings and future milestones.
For additional financial information, including interim financial statements and management’s analysis, interested parties can visit the company’s website or SEDAR.
