The prominent American online casino and sports betting firm, Rush Street Interactive (RSI), has released its financial report for the quarter ending March 31. The firm’s earnings experienced a considerable rise and there was a substantial reduction in its losses compared to previous periods.
To paint a clearer picture, the data showed that Rush Street’s revenue in the first quarter hit a remarkable $217 million, a 34% surge on a year-on-year basis compared to the previous year’s reported $162.4 million. Furthermore, the gaming operator managed to bring down its net loss from $24.5 million recorded in Q1 2023 to a modest $2.2 million in Q1 2024.
On top of this, RSI’s adjusted EBITDA for this duration recorded a commendable $17.1 million, a significant gain from the $8.7 million loss in Q1 2023, translating to a difference, or rather an improvement of $25.8 million.
The gaming corporation also reduced its spending on advertisements and promotional activities from $49.4 million in Q1 2023 to a more controlled total of $37.8 million in the first quarter of 2024.
Additionally, the report highlighted a year-on-year increase of 20% in active monthly users in the United States and Canada, with the number totalling 176,000. The average spending by customers in this region reached $355 per month.
Contrastingly, Latin America saw a 72% year-on-year surge for the same period in its active monthly users, totalling 224,000. However, users in this region reported an average expenditure of only $43.
RSI concluded the quarter with a substantial unrestricted cash balance and cash equivalents amounting to $191 million.
With the firm’s FY 2024 plans unveiled, RSI is anticipating a revenue ranging from $810-860 million alongside adjusted EBITDA of $50-60 million. These projections, if achieved, would represent increases of 21% and 573% respectively.
Satisfaction from CEO Schwartz Over Recent Figures
The CEO of RSI, Richard Schwartz, voiced his contentment with the latest figures, stating that his team’s hard work in both the iGaming and sports betting venues has paid off, delivering record-breaking results for the quarter.
The team feels privileged to have reached these numbers, which indicate our firm’s continued dedication and rigorous commitment to prioritizing the quality of our product as well as customer experience.
Richard Schwartz, CEO, RSI
Schwartz also acknowledged the impressive figures in Delaware where Rush Street is the lone iGaming company. He remains confident that the current monopoly in the state will persist.
The CEO expressed the company’s keenness to develop RSI further, pushing expansion and increasing shareholder value. With that objective, Rush Street is debating expanding into additional markets like Peru and perhaps Brazil.
Moving forward, Rush Street plans to persistently develop in-house gaming content, keeping its player base engaged through its unique product lines.
Schwartz concluded by addressing merger speculations with DraftKings, stating his inability to confirm the reports but in ambiguously stating that his team will “keep an open mind for all potential opportunities henceforth.”
