Rush Street Interactive Reports Revenue Increase and Continued Growth
LISTEN TO THIS ARTICLE:Rush Street Interactive (RSI), a leading online gaming company, has reported continued growth in its first quarter of 2023, with expectations of achieving profitability in the second half of the year.
The company saw significant improvement in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) loss, which fell from $43.4m to $8.7m, reflecting the successful balancing of growth and profitability. The company achieved profitable growth across a number of core casino markets, including Ontario, Canada, Colombia, and West Virginia in the US.
RSI's sports betting partnership with Kambi was also extended, with the latter to continue providing its sportsbook engine to RSI in 15 US states, Canada, Colombia, and Mexico.
Although the company announced a joint plan with the Connecticut Lottery Corporation to wind down their online and in-person sports betting partnership towards the end of the quarter, CEO Richard Schwartz remained optimistic about the company's long-term targets and growth plans.
Looking to the full year, RSI expects revenue to amount to between $630.0m and $700.0m, which is unchanged from its previous guidance. The midpoint of this range, $665.0m, represents a 12.3% increase from the $592.0m posted in 2022.
The company's Q1 results showed a 20.4% increase in revenue from the corresponding period last year, amounting to $162.4m. Operating expenses remained level at $184.4m, with savings in advertising and promotions offsetting a rise in revenue costs, general administration, and depreciation and amortization. This resulted in an operating loss of $22.1m, a significant improvement on the $50.0m loss at the same point in 2022.
RSI paid $2.8m in income tax in Q1, leaving a net loss of $24.5m, compared to a $52.3m loss in 2022. After removing $17.2m in losses attributable to non-controlling interests, the net loss attributable to RSI was $7.3m, half the $14.7m loss in 2022.
The company's approach of staying disciplined in its approach and successfully balancing growth and profitability over the long run has yielded positive results, and it remains confident that its focused strategy will reward shareholders over the long term.
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