In the latest quarter, NorthStar reported significant growth with revenue and gross margin increasing by over 60%, according to Michael Moskowitz, the Chair and CEO. The efficient scaling of the business resulted in top-line growth outpacing expenses, showcasing the potential of the business model.
Financial Highlights for the Second Quarter Ended June 30, 2024 ("Q2 2024"):
- Revenue, including managed services fees and net of bonuses, promotional costs, and free bets, reached $7.5 million in Q2 2024, a 61% increase from the previous year.
- Total wagers at Northstarbets.ca were $225.5 million in Q2 2024, a 41% increase compared to the same period in 2023.
- Gross Gaming Revenue at NorthStarbets.ca was $8.7 million in Q2 2024, a 58% increase from the previous year.
- Gross Margin reached $3.2 million in Q2 2024, representing a 69% increase from the same period in 2023 and approximately 42% of revenue.
Financial Highlights for the Six-Month Period Ended June 30, 2024:
- Revenue totaled $13.4 million, a 62% increase from the previous year.
- Total wagers at Northstarbets.ca reached $443.5 million, a 48% increase compared to the same period in 2023.
- Gross Gaming Revenue at NorthStarbets.ca was $16.3 million, a 65% increase from the previous year.
- Gross Margin was $5.4 million, marking a 77% increase from the same period in 2023 and representing approximately 40% of revenue.
Recent Operating Highlights:
- 48% year-over-year increase in active players in Q2 2024, along with a decline in cost per acquisition and a rise in estimated player values.
- Outpacing industry-wide growth rates in Total Wagers and Gross Gaming Revenue according to iGaming Ontario’s report for Q2 2024.
- Renewal of a strategic marketing agreement with Playtech Software Limited to accelerate player acquisition in Ontario.
- Secured $3 million in short-term financing for continued growth.
- Anniversary celebration of the NorthStar Bets platform, generating over $1 billion in total wagers in the first two years.
- Rolling out enhancements to "Sports Insights 2.0" content vertical and successful EURO/Copa campaign.
Outlook:
Michael Moskowitz expressed confidence in NorthStar’s performance and growth prospects, highlighting the platform’s competitive position among international competitors in online betting.
Corporate Update Webinar:
On August 14, 2024, Michael Moskowitz will present a detailed Corporate Update, covering Q2 earnings, current operations, and upcoming milestones. Investors and other interested parties are invited to register for the webinar for further insights.
Additional Information:
For further information, refer to NorthStar’s financial statements and management’s discussion and analysis for the relevant periods. These documents are available on SEDAR and the company’s corporate website.
About NorthStar:
NorthStar owns and operates NorthStar Bets, an Ontario-based casino and sportsbook platform offering a premium user experience. The company is positioned as a convergence leader in the sports media and sports wagering intersection, committed to responsible gaming standards.
Cautionary Note: The provided forward-looking information contains risks and uncertainties that may lead to deviations from anticipated results. It is recommended not to rely solely on this information for making investment decisions.
