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INTRALOT announces First Quarter 2022 Financial Results

Published

3 years ago

May 27, 2022

Reading Time: 10 minutes

INTRALOT SA (RIC: INLr.AT, Bloomberg: INLOT GA), an international gaming solutions and operations leader, announces its financial results for the three-month period ended March 31^st, 2022, prepared in accordance with IFRS.

OVERVIEW

European Gaming Congress 2024 (Warsaw, Poland)

Group Revenue at €97.7m in 1Q22 (+0.1% y-o-y).

EBITDA in 1Q22 at €26.1m (+4.9% y-o-y).

NIATMI (Net Income After Tax and Minority Interest) from continuing operations at €-5.7m, vs.

€-6.9m a year ago.

Greek entities OPEX better by 12.5% y-o-y.

Operating Cash Flow at €17.3m in 1Q22.

Group Net CAPEX in 1Q22 was €4.3m.

Group Cash at the end of 1Q22 at €98.0m.

Net Debt at €500.6m at the end of 1Q22.

Net Debt/ LTM EBITDA at 4.5x in 1Q22.

On April 26, 2022, INTRALOT announced that it will convene a shareholders’ meeting to approve a Share Capital Increase of the Company via a rights issue, up to an amount not exceeding the 150% of the paid-up share capital. The proceeds will be used to purchase the shares in Intralot Inc. currently not controlled by the parent Group. To this end a binding Sale Purchase Agreement has been signed with the minority shareholders controlling 33.2m shares of Intralot Inc. for a price of €3.65 per share, conditional upon successful completion of the Share Capital Increase. INTRALOT announced that it has signed a binding MOU with Standard General Master Fund II L.P., according to which Standard General will purchase all unallocated shares in the Share Capital Increase, up to a number not exceeding one third of the total voting shares of Intralot SA for up to €0.58 per share.

On May 23, 2022, an extraordinary Shareholders’ Meeting provided authorization to the Board of Directors of Intralot SA to determine the terms of the Share Capital Increase and undertake all necessary actions.

Note:

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals.

Group Headline Figures

(in € million)	1Q22	1Q21	%	LTM
(in € million)	1Q22	1Q21	Change	LTM
			Change
Revenue (Turnover)	97.7	97.6	0.1%	414.1
GGR	79.8	78.9	1.2%	336.2
OPEX¹	(21.8)	(22.1)	-1.2%	(101.4)
EBITDA²	26.1	24.9	*4.9%*	111.7
EBITDA Margin	26.7%	25.5%	+ 1.2pps	27.0%
(% on Revenue)	26.7%	25.5%	+ 1.2pps	27.0%
(% on Revenue)
EBITDA Margin	32.7%	31.6%	+ 1.1pps	33.2%
(% on GGR)	32.7%	31.6%	+ 1.1pps	33.2%
(% on GGR)
Capital Structure Optimization	(0.3)	(5.0)	-93.9%	(12.4)
expenses	(0.3)	(5.0)	-93.9%	(12.4)
expenses
D&A	(17.1)	(15.9)	7.3%	(72.2)
EBT	(2.3)	(2.8)	*17.5%*	37.6
EBT Margin (%)	-2.4%	-2.9%	+ 0.5pps	9.1%
NIATMI from continuing operations	(5.7)	(6.9)	*17.9%*	27.8
Total Assets	580.5	612.1	–	–
Gross Debt	598.6	734.3	–	–
Net Debt	500.6	643.7	–	–
Operating Cash Flow from total	17.3	24.5	-29.6%	100.4
operations	17.3	24.5	-29.6%	100.4
operations
Net CAPEX	(4.3)	(2.9)	47.3%	(24.3)

INTRALOT Chairman & CEO Sokratis P. Kokkalis noted:

“First quarter results show a consolidation of gains and recovery from the COVID impact and reflect an improved financial profile, with normalized revenues and a reduction in operational expenses and debt servicing costs consistent with the Company’s business plan. On the background of this strongly improved P/L and Balance Sheet, the Company has designed and is about to launch a Share Capital Increase by means of Rights Issue and has secured the commitment of Standard General Master Fund

P. as cornerstone investor for the unsubscribed rights in a move that will significantly strengthen our prospects to grasp the tremendous opportunities in the US and the global markets.”
OPEX line presented excludes the capital structure optimization expenses.

The Group defines “EBITDA” as “Operating Profit/(Loss) before tax” adjusted for the figures “Profit/(loss) from equity method consolidations”, “Profit/(loss) to net monetary position”, “Exchange Differences”, “Interest and related income”, “Interest and similar expenses”, “Income/(expenses) from participations and investments”, “Write-off and impairment loss of assets”, “Gain/(loss) from assets disposal”, “Reorganization costs” and “Assets’ depreciation and amortization”.

OVERVIEW OF RESULTS

REVENUE

Reported consolidated revenue posted a steady performance compared to 1Q21, leading to total revenue for the three-month period ended March 31^st, 2022, of €97.7m (+0.1%).

Lottery Games was the largest contributor to our top line, comprising 61.9% of our revenue, followed by Sports Betting which contributed 18.8% to Group turnover for the three-month period. Technology contracts accounted for 7.7% and VLTs monitoring represented 11.2% of Group turnover, while Racing constituted the 0.5% of total revenue.

Reported consolidated revenue for the three-month period is higher only by €0.1m year over year. The main factors behind the steady top line performance per Business Activity are:

€+1.8m (+6.1%) from our Licensed

Operations (B2C) activity line with the variance driven by:

Higher revenue in Argentina (€+2.5m or +32.0% y-o-y), driven by local market growth. In local currency, current year results posted a +50.4% y-o-y increase, and
Lower revenue in Malta (€-0.6m or -2.9% y-o-y), driven by market performance.
€+0.7m (+1.3%) from our Technology and Support Services (B2B/ B2G) activity line, with the variance driven by:
Higher revenue in Australia (€+1.1m or +30.6% y-o-y), due to lockdown restrictions in 1Q21,
Higher revenue in Croatia (€+0.9m), following the go-live of the lottery solution developed for Hrvatska Lutrija (national lottery of Croatia),
Higher revenue from other jurisdictions (€+0.5m) mainly due to services related sales, and
Lower revenue in US operations (€-1.9m or -5.1% y-o-y), was primarily affected by the nonrecurrence of the jackpot that boosted 1Q21 sales by c. €4.0m. Revenue from services ended lower by -3.4% y-o-y, while revenue from merchandise sales generated a deficit of -55.4% y-o-y due to their less frequent nature. From a currency perspective, there was a positive impact of 6.9% (Euro depreciation versus a year ago — in average terms).
€-2.4m (-18.3%) from our

Management (B2B/ B2G) contracts activity line with the variance driven by:

Slightly higher revenue in Morocco (€+0.1m),
Marginally higher revenue from our US Sports Betting contracts in Montana and Washington, D.C. (€+0.1m), and
Lower revenue from our Turkish operations (€-2.6m), solely affected by the appreciation of EUR (+75.8% versus a year ago – in average terms). In local currency, current year results posted a +20.4% y-o-y increase. In 1Q22, the local Sports Betting market expanded close to 1.3 times y-o-y, with the online segment representing close to 89% of the market at the end of 1Q22.
Constant currency basis: In 1Q22, revenue — net of the negative FX impact of €3.8m —reached €101.4m (+4.0% y-o-y).

GROSS GAMING REVENUE & Payout

Gross Gaming Revenue (GGR) from continuing operations concluded at €79.8m in 1Q22, posting an increase of 1.2% (or €+0.9m) year over year, attributable to:
the decrease in the non-payout related GGR (-1.7% y-o-y or €-1.2m vs. 1Q21), driven mainly by the lower top line contribution of our US operations (jackpot affected), followed by
the increase in the payout related GGR (+20.2% y-o-y or €+2.1m vs. 1Q21), driven mainly by the lower average payout ratio both in Malta and Argentina (+4.3% y-o-y on wagers from licensed operations³). 1Q22 Average Payout Ratio⁴ decreased by 5.4pps vs. 1Q21 (58.9% vs. 64.4%), significantly affected by the higher weighted contribution from our operations in Malta.
Constant currency basis: In 1Q22, GGR — net of the negative FX impact of €3.1m — reached €82.9m (+5.1% y-o-y).
Licensed Operations Revenue also include a small portion of non-Payout related revenue, i.e., value-added services, which totaled €1.3m and €0.8m for 1Q22 and 1Q21respectively.
Payout ratio calculation excludes the IFRS 15 impact for payments to customers.

OPERATING EXPENSES⁵ & EBITDA⁶

Total Operating Expenses ended lower by €0.3m (or -1.2%) in 1Q22 (€21.8m vs. €22.1m). After excluding the higher D&A expenses (€0.7m) in USA, Morocco and Croatia, Operating Expenses ended lower by €0.9m supported by cost containments in HQ perimeter.

Other Operating Income from continuing operations ended at €5.7m presenting an increase of 3.2% y-o-y (or €+0.2m). The bulk of income is driven by the equipment leases in the USA.

EBITDA from continuing operations amounted to €26.1m in 1Q22, posting an increase of 4.9% (or €+1.2m) compared to 1Q21. Despite the absence of jackpot that boosted significantly 1Q21 performance (US operations), the Group has managed to improve its EBITDA via the combined effect of the lower payout from our licensed operations and the lower Operating Expenses.

On a yearly basis, EBITDA margin on sales improved to 26.7%, compared to 25.5% in 1Q21 (+1.2pps).

LTM EBITDA stands at €7m.

Constant currency basis: In 1Q22, EBITDA, net of the negative FX impact of €1.4m, reached €27.5m (+10.5% y-o-y).

EBT / NIATMI

EBT in 1Q22 totaled €-2.3m, compared to €-2.8m in 1Q21, with the variance driven by:

the lower reorganization expenses following the succesful conclusion of our capital structure optimization process (€+4.7m vs 1Q21),
the lower interest expenses, direct effect of debt restructuring (€+1.9m vs 1Q21)
the positive impact from EBITDA (€+1.2m vs 1Q21)

The major headwinds affecting the improved perfornance can be attributed to:

the negative impact from FX results (€-4.2m vs 1Q21), as a result of the valuation of cash balances in foreign currency other than the functional currency of each entity, the valuation of commercial and borrowing liabilities of various subsidiaries abroad in EUR, as well as the negative effect from the reclassification of FX reserves to Income Statement applying IFRS 10,
the recognition of expenses vs income from participations and investments (€-1.5m vs 1Q21),
the higher D&A (€-1.2m vs 1Q21), mainly due to Turkey (Bilyoner) and Morocco
the accounting loss identified due to IAS 29 in our Argentinian operations (€-1.1m vs 1Q21).

Constant currency basis: In 1Q22 EBΤ, adjusted for the FX impact, reached €-0.4m, from €-6.5m in 1Q21.

NIATMI from continuing operations in 1Q22 concluded at €-5.7m compared to €-6.9m in 1Q21. NIATMI from total operations in 1Q22 amounted to €-5.7m (improved by €2.6m vs. a year ago), including the performance of the discontinued operations in Peru and Brazil.
Constant currency basis: NIATMI (total operations) in 1Q22, on a constant currency basis, reached €-5.3m from €-12.1m in 1Q21.
Operating Expenses analysis excludes expenditures related to capital structure optimization.
EBITDA analysis excludes Depreciation & Amortization, and expenditures related to capital structure optimization.

CASH-FLOW

Operating Cash-flow in 1Q22 amounted to €17.3m, lower by €7.3m, compared to 1Q21. Excluding the operating cash-flow contribution of our discontinued operations in Brazil, the cash-flow from operating activities is lower by €7.0m vs. a year ago and is attributed to Income Tax payments vs returns 1Q21.

Adjusted Free Cash Flow⁷ in 1Q22 decreased by €2.9m to €1.7m, compared to €4.6m a year ago. The main negative contributors to this variance were the income tax paid vs return in 1Q21 (€-7.4m y-o-y) and the higher maintenance capex (€-1.8m). On positive ground, dividends paid during the period were lower (€+3.1m y-o-y), net finance charges following the capital restructuring generated savings (€+2.0m y-o-y) and EBITDA performance has been improved (€+1.2m y-o-y).

Net CAPEX in 1Q22 was €4.3m, higher by €1.4m compared to 1Q21. CAPEX in 1Q22 has been allocated towards R&D and project pipeline delivery (€0.3m), US (€3.0m) and the rest of operations (€1.0m). Maintenance CAPEX accounted for €2.2m, or 52.0% of the overall capital expenditure in 1Q22, from €0.8m or 28.2% in 1Q21.

Net Debt, as of March 31st, 2022, stood at €500.6m, increased by €3.4m compared to December 31st, 2021 (€497.2m). The Net Debt increase was impacted primarily by the normal course of business following an adverse working capital movement, the exchange rate differences

(€+4.7m) for our USD denominated debt, and investments in growth capex (€+1.4m) for our US operations. The increase was partially offset by the lower interest accrued over 1Q22 vs December 2021.

Calculated as EBITDA – Maintenance CAPEX – Cash Taxes – Net Cash Finance Charges (excluding refinancing charges) – Net Dividends Paid; all finance metrics exclude the impact of discontinued operations.

OUTLOOK

Although the risks associated with the pandemic of COVID-19 have been downgraded, the geopolitical tension arising from the war in Ukraine coupled with the energy crisis, the supply chain disruptions and the rising inflation are factors that are expected to determine the economic outlook over the coming months.

Our Group does not have direct exposure in terms of operations or dependency on suppliers in Ukraine and Russia. However, the risk of indirect effects on the Group’s business activities from the reduction in the household disposable income and the possible increase in operating expenses due to inflationary pressures cannot be overlooked.

The Management of the Company monitors the geopolitical and economic developments on a constant basis and is ready to take all the necessary measures for protecting its operations.

RECENT/ SIGNIFICANT COMPANY DEVELOPMENTS

On April 26, 2022, INTRALOT announced that it will convene a shareholders’ meeting to approve a Share Capital Increase of the Company via a rights issue, up to an amount not exceeding the 150% of the paid-up share capital. The proceeds will be used to purchase the shares in Intralot Inc. currently not controlled by the parent Group. To this end a binding Sale Purchase Agreement has been signed with the minority shareholders controlling 33,227,256 ordinary shares of Intralot Inc. for a price of €3.65 per share, conditional upon successful completion of the Share Capital Increase. INTRALOT announced that it has signed a binding MOU with Standard General Master Fund II L.P., according to which Standard General will purchase all unallocated shares in the Share Capital Increase, up to a number not exceeding one third of the total voting shares of Intralot SA for up to €0.58 per share.
On May 23, 2022, an extraordinary Shareholders’ Meeting provided authorization to the Board of Directors of Intralot SA to determine the terms of the Share Capital Increase and undertake all necessary actions.

APPENDIX

Performance per Business Segment⁸

YTD Performance

Performance per Geography

Revenue Breakdown

(in € million)	1Q22	1Q21	%
(in € million)	1Q22	1Q21	Change
			Change
Europe	35.8	34.4	4.0%
Americas	52.3	50.5	3.4%
Other	15.3	16.8	-8.9%
Eliminations	(5.7)	(4.2)	–
Total Consolidated Sales	97.7	97.6	*0.1%*

Gross Profit Breakdown

(in € million)	1Q22	1Q21	%
(in € million)	1Q22	1Q21	Change
			Change
Europe	3.5	(1.7)	–
Americas	11.4	13.8	-17.5%
Other	13.0	14.2	-8.4%
Eliminations	(2.7)	(0.7)	–
Total Consolidated Gross Profit	25.2	25.6	*-1.6%*

Part of the US revenue that concerns SB management, has been included under the category “Game Management”. The rest of the US revenue is included under the “Technology” business segment.

Gross Margin Breakdown
				%
		1Q22	1Q21	%
		1Q22	1Q21	Change
				Change
	Europe	9.8%	-5.1%	+ 14.8pps
	Americas	21.8%	27.4%	– 5.5pps
	Other	84.8%	84.4%	+ 0.4pps
	Total Consolidated Gross Margin	25.8%	26.2%	*– 0.4pps*

INTRALOT Parent Company results

Revenue for the period increased by 28.1%, to €6.0m, with the improvement driven by the higher rendering of services towards the Group’s subsidiaries in the current period.

EBITDA shaped at €-1.3m from €-4.5m in 1Q21, with the positive variance stemming from the top-line improvement that generated higher profitability due to better margins and lower costs.
Earnings after Taxes (EAT) at €-6.7m from €-0.1m in 1Q21, impacted mainly by the gain recorded in 1Q21 following the sale of Intralot de Peru.

(in € million)	1Q22	1Q21	%
(in € million)	1Q22	1Q21	Change
			Change
Revenue	6.0	4.6	*28.1%*
Gross Profit	(0.5)	(3.1)	-82.9%
Other Operating Income⁹	0.1	0.0	–
OPEX⁹	(4.5)	(5.1)	-11.8%
EBITDA⁹	(1.3)	(4.5)	*71.5%*
EAT	(6.7)	(0.1)	–
CAPEX (paid)	(0.3)	(0.5)	-35.4%

Other Operating Income, Operating Expenses and EBITDA lines presented exclude the expenditures and recharges related to capital structure optimization.

CONFERENCE CALL INVITATION – 1Q22 FINANCIAL RESULTS

Sokratis Kokkalis – Chairman & CEO, Chrysostomos Sfatos – Deputy Group CEO, Nikolaos Nikolakopoulos – Deputy Group CEO, Fotis Konstantellos – Deputy Group CEO, Andreas Chrysos – Group CFO, Nikolaos Pavlakis – Group Tax & Accounting Director, Antonis Skiadas – Group Finance, Controlling & Budgeting Director and Michail Tsagalakis – Capital Markets Director, will address INTRALOT’s analysts and institutional investors to present the Company’s 1Q22 results, as well as to discuss the latest developments at the Company.

Latest News

Rivalry Announces Application for a Management Cease Trade Order for Late Filing of Annual Filings

Published

2 hours ago

April 16, 2025

GamingAmericas.com

rivalry-announces-application-for-a-management-cease-trade-order-for-late-filing-of-annual-filings

Rivalry Corp. (TSXV: RVLY) (OTCQB: RVLCF) (“Rivalry” or the “Company”), the leading sportsbook and iGaming operator for digital-first players, today announces that it will be late in filing its audited financial statements and management’s discussion and analysis for the year ended December 31, 2024 and related certifications (the “Annual Filings”).

In response to the Annual Filings delay, the Company has applied to the Ontario Securities Commission for a management cease trade order (the “MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”) that will prohibit the management of the Company from trading in the securities of the Company until such time as the Annual Filings are filed. No decision has yet been made by the Ontario Securities Commission on this application. The Ontario Securities Commission may grant the application and issue the MCTO or it may impose an issuer cease trade order if the Annual Filings are not filed in a timely fashion. If the MCTO is granted, such an order would not generally affect the ability of persons who have not been directors, officers or insiders of the Company to trade the securities of the Company pending the filing of the Annual Filings on SEDAR+.

As previously announced, the Company has initiated a review of strategic alternatives to maximize long-term stakeholder value (the “Strategic Review”). The Company has determined that it is in the best interests of the Company to utilize its current management resources to advance the Strategic Review, resulting in a delay of completing the Annual Filings by the April 30, 2025 deadline.

The Company is working on the preparation of the Annual Filings and expects to complete the Strategic Review and the Annual Filings by June 30, 2025. Until the Annual Filings are filed, the Company intends to satisfy the provisions of the Alternate Information Guidelines as set out in NP 12-203 for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a news release.

The Company confirms that it is not subject to any insolvency proceeding as of the date hereof. The Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date hereof.

Company Contact:
Steven Salz, Co-founder & CEO
ss@rivalry.com

Investor Contact:
investors@rivalry.com

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Strategic Review, the anticipated filing of the Annual Filings, the application for the MCTO and the granting thereof by the Ontario Securities Commission.

Forward-looking statements are based on the opinions and estimates of management of the Company at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include regulatory or political change such as changes in applicable laws and regulations; the ability to obtain and maintain required licenses; the esports and sports betting industry being a heavily regulated industry; the complex and evolving regulatory environment for the online gaming and online gambling industry; the success of esports and other betting products are not guaranteed; changes in public perception of the esports and online gambling industry; negative cash flow from operations and the Company’s ability to operate as a going concern; failure to retain or add customers; the Company having a limited operating history; operational risks; cybersecurity risks; reliance on management; reliance on third parties and third-party networks; exchange rate risks; risks related to cryptocurrency transactions; risk of intellectual property infringement or invalid claims; the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and general economic, market and business conditions. For additional risks, please see the Company’s management’s discussion and analysis for the three and nine months ended September 30, 2024 under the heading “Risk Factors”, and other disclosure documents available on the Company’s SEDAR+ profile at sedarplus.ca.

No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The post Rivalry Announces Application for a Management Cease Trade Order for Late Filing of Annual Filings appeared first on Gaming and Gambling Industry in the Americas.

Latest News

Rivalry Reports Strong Q1 2025 KPI Growth, Validating Strategic Pivot Amid Temporary Margin Variance

Published

9 hours ago

April 16, 2025

GamingAmericas.com

rivalry-reports-strong-q1-2025-kpi-growth,-validating-strategic-pivot-amid-temporary-margin-variance

Rivalry Corp. (TSXV: RVLY) (OTCQB: RVLCF) (“Rivalry” or the “Company”), the leading sportsbook and iGaming operator for digital-first players, today shared preliminary key performance indicators (“KPIs”) and revenue figures for the three months ended March 31, 2025 (“Q1 2025”), underscoring the success of its strategic transformation and path toward sustainable, profitable growth. All dollar figures are quoted in Canadian dollars.

Q1 2025 marks the first full quarter under Rivalry’s revamped operating model, following significant changes to product offerings, organizational structure, cost management, and user acquisition strategies. Underlying KPIs show improved unit economics, deeper engagement, and structural momentum toward long-term sustainability.

Revenue in the quarter was lower than prior periods – a result of Rivalry’s deliberate shift to a leaner, more efficient model – creating a stronger foundation that the Company is now building on. The shortfall also reflected temporary variance in sportsbook hold, amplified by a strategic focus on high-value and VIP players. The Company believes that these segments drive significantly greater long-term value but can introduce short-term volatility as they scale.

“Our Q1 KPIs are delivering tangible results that validate our strategic shift,” said Steven Salz, Co-Founder and CEO of Rivalry. “The structural changes we implemented over the past six months – from streamlining operations and refocusing the product, to modernizing our platform and concentrating on high-value players – are now clearly reflected in our KPIs. We’re operating more efficiently than ever, generating significantly more revenue per user, and moving closer to achieving sustainable profitability.”

Q1 2025 Highlights¹:

Operational Efficiency Up 400%: In Q1 2025, Rivalry generated over 400% more net revenue per user per dollar of operating expense as compared to its average before the strategic overhaul. This marks a significant leap in cost efficiency and operating leverage, validating the impact of recent changes.
Shift to High-Value Players Driving 175% Increase in Player Monthly Deposits: Total deposits rose 36% month over month in February 2025 and another 12% in March 2025, despite a smaller active user base than past peaks. In Q1 2025, average monthly deposits per player were just over 175% higher than the periods prior to Rivalry’s October 2024 strategic overhaul – a clear result of the Company’s focus on acquiring and retaining high-value players, while improving unit economics and lowering variable costs.
115% Increase in Monthly Deposit Frequency: In Q1 2025, average monthly deposit frequency per player increased by 115% compared to the average prior to Rivalry’s October 2024 rebuild – signaling strong user re-engagement and validating the Company’s refined product experience and more targeted player strategy.
All-Time High in Monthly Betting Handle per User: Monthly betting handle per active user hit a new all-time high in March 2025, marking the fifth consecutive month of record-breaking engagement and deeper player value.
Record Revenue per User: In March 2025, monthly Gross and Net Revenue per active user reached all-time highs (normalized for margin variance), extending a four-month streak of consistent revenue per active user growth and player monetization strength.
Month over Month Active User Growth: Monthly active players grew by 9% in March 2025, following a similar increase in February 2025, despite a significantly reduced global marketing budget compared to the same period last year.
Ontario Regulated Market Showing Strong, Improving Unit Economics: Since the Company’s operational shift, Rivalry’s Average Revenue Per Playing Account (“ARPPA”) in Ontario – a monthly metric defined by and publicly reported by gaming regulator iGO – has generally trended in line with the market average, and in some months exceeded it by as much as 50%. ARPPA has also nearly doubled compared to pre-overhaul levels at Rivalry, reflecting strengthening unit economics supported by efficient customer acquisition, with customer acquisition cost paybacks consistently within single-digit weeks.

Operational Momentum and Efficiency Gains Reflect Structural Progress

The Company’s Q1 2025 performance reflects the first full quarter operating under a significantly leaner structure, with total monthly run rate operating expenses reduced by approximately 65% as compared to prior peak periods.

Betting handle in Q1 2025 was $58.2 million, and net revenue $1.3 million¹, for a net revenue margin of 2.3%. This compares to Rivalry’s full-year 2024 net revenue margin of 4.4%¹, with the Q1 2025 margin variance largely attributable to short-term fluctuations in sportsbook hold. This was amplified by the Company’s strategic pivot toward high-value and VIP players – segments that offer significantly greater long-term value but naturally introduce more short-term variability in margin performance as they scale.

On a normalized margin basis, Rivalry’s Q1 2025 net revenue would have covered approximately 75% of current run rate operating expenses, inclusive of additional cost reductions completed in early April that lowered monthly operating expenses by approximately $140,000. Growing user value, rising engagement, and stronger unit economics reflect encouraging momentum toward long-term financial sustainability.

“The KPIs are telling the real story – user value is up, efficiency is up, and player engagement is the strongest we’ve seen in the Company’s history,” said Steven Salz, Co-Founder and CEO of Rivalry. “Even with soft margin outcomes in Q1 2025, the model is showing strong underlying signals. As sportsbook hold normalizes and our cost base becomes leaner, we believe we’re moving in the right direction.”

Over the past six months, Rivalry has reduced monthly run rate operating expenses by approximately $1.7 million per month, inclusive of the recently completed April 2025 reductions. These reductions have been enabled by a fully modernized core product with improved site performance and ongoing development velocity across key revenue-driving features. The Company has also realized efficiencies through vendor rationalization and the rollout of AI-driven tools across departments.

“We’ve built a stronger, leaner, and more focused Rivalry,” Salz added. “Our improved KPIs and disciplined cost management have created a healthier foundation. With continued operational momentum and a re-energized product, we believe we’re on a promising path forward.”

The post Rivalry Reports Strong Q1 2025 KPI Growth, Validating Strategic Pivot Amid Temporary Margin Variance appeared first on Gaming and Gambling Industry in the Americas.

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Elantil strengthens its marketplace with Hub88 partnership

Published

11 hours ago

April 16, 2025

George Miller

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Reading Time: 2 minutes

Revolutionary platform solution provider adds over 12,000 cutting-edge casino titles to its portfolio after integrating with industry-leading casino aggregator

Elantil, the ambitious new platform solution provider aiming to redefine relationships between operators and suppliers, has announced it has significantly expanded the range of options available via its online marketplace after striking a new partnership with Hub88.

A high-profile integration with one of iGaming’s most successful casino aggregators, the deal will see an incredible range of 12,000+ state-of-the-art casino titles from over 120 of the industry’s leading software studios made available to Elantil clients – and all at no extra cost to the operator.

As the Elantil model enables clients to form contracts with suppliers without the need of an intermediary, the company doesn’t dictate the terms of their agreements and never charges any additional commission, allowing operators to enjoy simple, cost-effective one-click integrations.

Boasting one of the largest content libraries in the industry, a powerful back office and customer support that’s available 24/7 in a variety languages, Hub88 prides itself on offering the next generation of casino aggregation and can help operators provide a more tailored user experience.

The aggregator’s advanced personalisation model draws on player interaction data to create recommendations for top games, similar games and custom lobbies, meaning customers can find the content they love faster and also enjoy titles that have been curated to their preferences.

Offering all this and more, the addition of Hub88 to the Elantil’s Marketplace will provide a major boom to the company’s clients and marks the third such expansion Elantil has made in the past month – again reiterating its commitment to rewriting the playbook for online platform solutions by connecting as much third-party providers it can to its current and future operators.

John Debono, Chief Technical Officer at Elantil, said: “The Elantil marketplace was designed to connect operators with a comprehensive range of iGaming products and the addition of Hub88’s content will only strengthen this proposition further. Offering one of the largest libraries in the industry, Hub88 puts over 12,000 games at operators’ fingertips – all of which are now available via our easy and cost-effective plug-and-play solution.”

Ollie Castelman, Managing Director at Hub88, said: “At Hub88 we pride ourselves on providing the next generation of casino aggregation, so it’s only natural that we’d choose to partner with a company that’s rewriting the rulebook when it comes to online platform solutions. With all our content now available via the Elantil Marketplace, interested clients can reach out to us with their requests and we’ll supply the details they need to integrate our games directly from the platform.”

The post Elantil strengthens its marketplace with Hub88 partnership appeared first on European Gaming Industry News.