Rush Street Interactive has reported its third-quarter results for the period ending on September 30, 2022. The company, which focuses on sports betting and online casino products in the United States and the Americas, has had much to be happy about, the report noted, although some subdued performance still persisted.
Net Loss Nothing to Worry About
Revenue for the reported period was $148 million or an increase of 20% year-over-year. This is more than the $122.9 million posted a year ago. However, net loss continued to grow as Rush Street Interactive is still experiencing growing pains, and seeks to consolidate a bigger footprint in the markets it has decided to operate in.
Net loss stood at $22.7 million for the third quarter, greater than the $18.9 million posted during the same period last year. Meanwhile, the adjusted EBITDA loss of $12.5 million compared to an adjusted EBITDA loss of $12.2 million from a year before. Commenting on these results, Richard Schwartz, chief executive officer at Rush Street Interactive, offered a detailed breakdown of the company’s business and operations:
We posted a solid third quarter, as our efficient approach to marketing and robust platform continue to perform well.
Schwartz acknowledged that the company has experienced a lower-than-normal online casino hold rate, this is the money that players leave at the casino compared to how much they win. However, Schwartz was encouraged by the overall results, as he noted that Rush Street Interactive’s operations in both the online casino and sports betting vertical were strong, especially when put together.
“In terms of activity, we continue to see very strong volumes in markets where we operate both online casino and sports betting, as we are able to execute on the enhanced profitability offered by the online casino vertical in these markets,” Schwartz explained.
Lots of Momentum Building Up
The company has been expanding in the North American region at a steady pace, including in places such as Ontario. Meanwhile, in Latin America, Rush Street Interactive has been stepping up its efforts to raise awareness for its products in Mexico while also seeing strong results from Colombia already. Presently, the company is determined to bring what it describes as a strong foundation in new markets that will translate into stable long-term growth opportunities.
Future profitability will also be kept in mind as the company seeks to grow its presence. Meanwhile, the company is also preparing to expand further in other states, including the three I’s, as Schwartz referred to them during the conference call. Those are Iowa, Illinois, and Indiana. There is also opportunity in New York, Schwartz concluded.
Source: Read Full Article