iGaming and sports betting company NorthStar Gaming has announced its Q2 2023 results, showcasing growth in revenue, handle, and gross margin. Northstar’s second-quarter gross gaming revenue reached CAD5.5 million ($4.04 million), marking a 26% increase from the previous quarter’s figure of CAD 4.4 million ($3.23 million). The business’s revenue resulted from a CAD160.1 million handle ($117.7 million), up 15% from the CAD139.5 million ($102.6 million) in Q1.
According to the report, during the quarter, gaming revenue was CAD4.6 million ($3.3 million), an increase of 27% from CAD3.6 million ($2.6 million) the prior quarter. Furthermore, the gross margin was CAD1.9 million ($1.3 million) in Q2, or 40% of Gaming revenue, an increase of 61% over Q1, when the gross margin represented 32% of Gaming revenue.
Michael Moskowitz, Chair and CEO of NorthStar, said: “Our second quarter growth was driven by increases in accounts and wagering activity as our differentiated, premium product continues to attract and engage customers.”
“Our integrated editorial content is proving to be increasingly popular with customers looking for insights to improve their betting experience. As the business scales, we are delivering improved financial performance through operating leverage with revenue growth expected to continue to outpace expenses,” he added.
According to the report, the acquisition of Slapshot Media in May contributed CAD3 million ($2.2 million) of total wagers and CAD100,000 ($73,578) of gaming revenue. The company expects the acquisition to open up the Canadian market to the brand beyond Ontario, thus expanding the business’s addressable market.
Among highlights for the quarter, the company shared that readership of its Insights content, a proprietary editorial feature offered to customers within the NorthStar Bets website and app, increased by 55% compared to the last quarter. These figures do not include readership generated externally, such as original NorthStar Bets content placed at Torstar media properties.
Moreover, the NorthStar Bets virtual casino game portfolio recently surpassed 500 titles, an increase of more than 50% since the start of this year.
“We expect the marketing and product initiatives we have underway to continue to drive growth throughout the remainder of this year and into 2024. The Slapshot Media acquisition we completed in the second quarter was a very important milestone in our goal of expanding the NorthStar Bets brand outside of Ontario starting in the fall and further leveraging our existing infrastructure and content,” the CEO noted.
H1 Results
For the six-month period, the business reported CAD8.3 million ($6.1 million) in revenue. During the period, Northstar’s costs were pushed up by CAD2.8 million ($2.06 million) listing costs to CAD16.2 million.
This led to a loss of CAD13.5 million ($9.9 million) for the six months ending 30 June. Due to the losses, it paid no taxes on either a three-month or six-month basis.
On Friday, Northstar also announced CAD10 million ($7.3 million) in new financing. This financing, which is due to close in September, will be funded through the issuing of shares and the entering into a new debt agreement.
Original article: https://www.yogonet.com/international/noticias/2023/08/29/68518-northstar-gaming-posts-growth-across-revenue-handle-and-margin-in-q2
