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State of Play’s TL;DR
- Rush Street Interactive reported a solid second quarter.
- Revenue was up nearly 40% and adjusted EBITDA was up 61%.
Rush Street Interactive delivered a strong second quarter, with revenue up 46% year over year to a record $393.8 million and adjusted EBITDA up 61% to $64.6 million.
The operator said Q2 net income was $29.3 million, versus $28.8 million a year earlier. Online casino made up 72% of quarterly revenue, while online sports betting accounted for 28%. Casino revenue rose 40% from last year, and sports betting revenue climbed 64%.
The BetRivers parent also raised its full-year outlook, with its BetRivers Online Casino again doing most of the heavy lifting.
That mix matters. CEO Richard Schwartz said online casino remains “the company’s primary value driver and its fastest-growing product segment in both North America and Latin America.”
North American revenue increased 23%, while Latin American revenue jumped 195%.
World Cup gives Rush Street a boost in Q2
Monthly active users also moved sharply higher. Rush Street reported more than 296,000 monthly active users in North America, up 51% year over year, and more than 652,000 in Latin America, up 62%. North American average revenue per monthly active user fell 18% to $320, which CFO Kyle Sauers attributed to “elevated player acquisition, as newer customer cohorts initially generate lower value than more established players.” In Latin America, ARPMAU rose 82% to $55.
Management said the World Cup helped player acquisition, reactivation, sports betting handle, and hold. More than 25% of first-time depositors acquired during the tournament also engaged with the casino product, which Schwartz said supported “the company’s view that its cross-sell improvements have been effective.”
Favorable sports hold added about $10 million to Q2 revenue, including the highest sports hold since inception in North America and in Colombia.
Rush Street Interactive now expects full-year revenue of $1.56 billion to $1.60 billion, up from prior guidance by $65 million at the midpoint. It raised adjusted EBITDA guidance to $245 million to $265 million, a $15 million midpoint increase.
The company also said it plans to spend more on marketing in the second half, including in Alberta after its July 13 launch. Q2 marketing expense was $48.6 million, or 12.3% of revenue, and Sauers said third-quarter marketing spend should run about $7 million to $10 million above Q2.
By the numbers, Rush Street Interactive ended June with $340 million in cash and no debt. It repurchased about $29 million of shares in May under its existing $50 million authorization, and the board approved a new $100 million buyback program.
Based on reporting by Yahoo Finance.
