NorthStar Gaming (BET) Q2 2024 earnings summary

Executive summary

• Achieved record revenue, gross margin, and wagers in Q2 2024, with revenue up 61% year-over-year to $7.5 million and gross margin up 69% to $3.2 million.

• Six-month revenue rose 62% to $13.4 million, with gross margin up 77% to $5.4 million compared to the same period last year.

• Active players increased 48% year-over-year in Q2 2024, while cost per acquisition declined 12%.

• Outperformed Ontario iGaming industry growth rates in both total wagers and gross gaming revenue.

Financial highlights

• Q2 2024 revenue: $7.5 million (+61% YoY); gross margin: $3.2 million (+69% YoY), representing 42% of revenue.

• Total wagers in Q2: $225.5 million (+41% YoY); gross gaming revenue: $8.7 million (+58% YoY).

• Six-month total wagers: $443.5 million (+48% YoY); gross gaming revenue: $16.3 million (+65% YoY).

• Net loss for Q2: $4.7 million, compared to $4.8 million in Q2 2023; six-month net loss: $11.2 million, improved from $13.4 million YoY.

• Gross margin as a percentage of revenue increased to 40% for the six-month period, up from 37% YoY.

Outlook and guidance

• Management expects continued growth, citing strong platform performance and innovation in content and customer service.

• Confident in outperforming the Ontario market on key metrics and maintaining growth momentum.