The Chair and CEO of NorthStar, Michael Moskowitz, expressed satisfaction with the company’s performance in the second quarter of 2024, citing significant growth in revenue and gross margin exceeding 60%. He emphasized the effective scaling of the business model, leveraging existing resources for efficient growth.
Financial highlights for the second quarter of 2024 included a 61% increase in revenue to $7.5 million, a 41% increase in total wagers to $225.5 million, and a 58% increase in gross gaming revenue to $8.7 million. The gross margin saw a 69% increase to $3.2 million.
For the six-month period ending June 30, 2024, revenue increased by 62% to $13.4 million, total wagers reached $443.5 million (up 48%), and gross gaming revenue was $16.3 million (up 65%). The gross margin saw a significant increase to $5.4 million.
Key operating highlights included a rise in active players by 48%, a decrease in the cost per acquisition by 12%, and a 7% increase in estimated 12-month player values. NorthStar outperformed the industry average growth rates in total wagers and gross gaming revenue for the second quarter of 2024, as reported by iGaming Ontario.
Furthermore, strategic initiatives such as a marketing agreement renewal with Playtech Software Limited and securing short-term financing for continued growth were highlighted. The Company also celebrated the second anniversary of the NorthStar Bets platform, surpassing $1 billion in total wagers in its first two years of operation. Additional enhancements, such as the Sports Insights 2.0 content initiative and successful promotional campaigns, were noted as contributing to increased player engagement and activity.
Looking ahead, Michael Moskowitz expressed confidence in NorthStar’s competitive position in the online betting market and reiterated a commitment to innovation, unique content offerings, and customer service to drive further growth.
A corporate update webinar hosted by Michael Moskowitz on August 14, 2024, will cover detailed insights into the company’s Q2 earnings, current operations, and upcoming milestones. Investors and interested parties are invited to register for the webinar for further information.
For additional financial information, including the Company’s consolidated interim financial statements and management’s discussion and analysis, please refer to the SEDAR+ website and NorthStar’s corporate website.
NorthStar operates NorthStar Bets, offering a local, premium gaming platform for casino and sportsbook experiences in Ontario. The company is focused on responsible gaming practices and partnerships with leading media companies.
Note: Non-IFRS financial measures, such as Gross Gaming Revenue, Total Wagers, and Profit/(Loss) before marketing and other expenses, are used by management to evaluate performance and provide additional insights into the company’s financial position. These measures are not standardized under IFRS and should be considered alongside IFRS financial information.
