The company reported impressive financial results for the second quarter ended June 30, 2024, with significant growth in revenue and gross margin. According to Michael Moskowitz, the Chair and CEO of NorthStar, the company achieved a record quarter with revenue and gross margin both exceeding 60%. The top-line growth outpaced expenses as the company efficiently scaled its business, showcasing the potential of its business model.
Key financial highlights for the second quarter included:
– Revenue, including managed services fees, net of bonuses, promotional costs, and free bets, reached $7.5 million, a 61% increase from the previous year.
– Total wagers at Northstarbets.ca totaled $225.5 million, a 41% increase year-over-year.
– Gross Gaming Revenue at NorthStarbets.ca was $8.7 million, marking a 58% increase from the previous year.
– Gross Margin for the quarter was $3.2 million, representing a 69% increase year-over-year and accounting for approximately 42% of revenue.
For the six-month period ended June 30, 2024, the company saw continued growth with revenue totaling $13.4 million, a 62% increase from the previous year. Total wagers at Northstarbets.ca reached $443.5 million, a 48% increase year-over-year, while Gross Gaming Revenue was $16.3 million, a 65% increase from the previous year. Gross Margin for the period was $5.4 million, marking a 77% increase year-over-year and representing approximately 40% of revenue.
Recent operating highlights included a significant increase in active players, a decline in the cost per acquisition of a customer, and a rise in estimated 12-month player values. The company also renewed its strategic marketing agreement with Playtech Software Limited and secured short-term financing to support its growth.
Looking ahead, Michael Moskowitz expressed confidence in the company’s prospects for continued growth. He highlighted the strength of NorthStar Bets’ online platform and its ability to outperform competitors in the Ontario market. The company remains committed to innovation, unique content offerings, and excellent customer service to drive future success.
A corporate update webinar is scheduled for August 14, 2024, where Michael Moskowitz will discuss the company’s Q2 earnings, operations, and upcoming milestones. Interested parties are invited to register for the webinar. Additional financial information and documents are available on the company’s website and SEDAR platform.
NorthStar is a Canadian company operating NorthStar Bets, a casino and sportsbook gaming platform, offering a premium user experience. The company aims to become a leader in the convergence of sports media and sports wagering, driven by strategic partnerships and a commitment to responsible gaming practices.
