NorthStar Gaming reports triple-digit growth in Q3 2023
17 November 2023
(PRESS RELEASE) -- NorthStar Gaming Holdings Inc. released its financial results for the three- and nine-month periods ended 30 September 2023. All dollar figures are quoted in Canadian dollars.
“We delivered another quarter of strong growth in Q3, more than doubling last year’s results across key measures including wagers and revenue,” said Michael Moskowitz, Chair and CEO of NorthStar. “In a seasonally slow quarter, we continued to expand our customer base through our premium, differentiated product offering, while at the same time demonstrating our ability to effectively manage costs.”
Financial highlights for the third quarter ended 30 September 2023:
- Total wagers at Northstarbets.ca were $138.0 million in Q3 2023, an increase of 140% compared to $57.6 million in Q3 2022.
- Revenue, net of bonuses, promotional costs and free bets, was $4.7 million in Q3 2023, including $0.2 million of services revenue contributed by Spreads.ca, compared to $2.0 million in Q3 2022, an increase of 131% over the same quarter in the previous year.
- Gross gaming revenue at NorthStarbets.ca was $5.5 million in Q3 2023, an increase of 120% over $2.5 million in Q3 2022.
- Gross margin was $1.6 million in Q3 2023, an increase of 527% over $0.3 million in Q3 2022, and represented 35% of revenue compared to 13% of revenue in Q3 2022.
- On October 31, 2023, the Company announced the completion of a private placement financing of approximately $10.3 million consisting of common shares, warrants and convertible debentures.
Recent operating highlights:
- The Company’s Insights content-proprietary editorial features offered seamlessly to customers within the NorthStar Bets website and app-continues to be a strong differentiator and driver of value. In Q3, players who read Insights content have 40% higher deposits on average than other players.
- The Company underscored its commitment to innovation with the announcement that it was first to market with an artificial intelligence feature that offers customers personalized sports bets based on their unique preferences.
- In early November 2023, Spreads.ca, an iGaming site owned and operated by the Abenaki Council of Wolinak, was rebranded to Northstarbets.com. The rebranding is expected to lead to continued development of the NorthStar Bets brand outside of Ontario.
“As we enter the busiest time of the year with most of the major North American sports leagues now underway, we are very well positioned to drive further improvements in our results,” added Mr. Moskowitz. “Our strengthened balance sheet, strategic partnerships, ongoing innovation in our product offering, and development of our brand across Canada all point towards solid growth for the rest of 2023 and into next year.”