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Reporting a positive adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the second quarter of 2023 is so on-trend right now. All the cool online gambling companies operating in the United States are doing it.
Rush Street Interactive (RSI), which offers its BetRivers and PlaySugarHouse online gambling apps in several US jurisdictions, is among that in-crowd. While still not technically profitable, the second quarter of 2023 saw the company make more gains in that direction.
Rush Street Q2 2023 earnings report highlights revenue gains
RSI continued its momentum from Rush Street’s Q1 2023 earnings in the second quarter of this year. During the first three months of this year, the most important aspects were declines in expenses and additional revenues pushing RSI toward breaking even.
In the second quarter, that goal became seemingly more feasible in the near future. According to RSI’s investor presentation, there was more good news for investors. The highlights included:
- revenue of $165.1 million for the quarter, a year-over-year increase of 15%
- reduction of promotional spending to $40.9 million, a decline of 8.6% compared to the second quarter of 2022
- net loss of $16.7 million, representing a 41% improvement from Q2 2022
RSI also touted that its adjusted EBITDA hit $1.2 million. It’s the first time that the company has reported a positive figure in that regard. While that’s mostly an internal measurement, it shows that RSI is keeping pace with its competition.
For example, Caesars also reported its first positive adjusted EBITDA for its digital division in the most recent quarter. BetMGM did the same thing. The end result for RSI is that it has informed investors to expect an even better year than originally projected.
RSI elevates revenue guidance for the rest of 2023
The investor presentation also released new guidance for the rest of the year in terms of RSI’s revenue. The company elevated the midpoint of its guidance by $5 million to $670 million. Should it hit that number, that would represent a 13% improvement compared to 2022.
In terms of where that escalation could come from, it might not be about RSI’s business in the United States. In a company press release, RSI CEO Richard Schwartz credited the company’s growth in Colombia for the revenue growth in the past quarter. The investor presentation stated that RSI is among the market leaders in that nation.
Schwartz also listed operational improvements as part of the reason for beating forecasts. Recent examples of the company’s activity in that regards has included focusing on its most profitable US markets. Toward that end, it remains to be seen whether RSI will be a player in any new opportunities in the US over the rest of this year.
Matthew Bain of PlayKentucky reports that RSI has not indicated whether it intends to seek a license to offer sports betting in Kentucky. That opportunity could be realized as soon as next month.
Furthermore, there is no official confirmation of RSI’s interest in either Maine or Vermont. Both of those states could launch their regulated sports betting systems by the end of the year. It could very well be that RSI is laser-focused on markets that offer real-money online casino opportunities.
Opting to pass on those chances could represent more of the cost-cutting measures that Schwartz discussed. A penny saved is a penny earned. Like kids who rolled their jeans and slapped a neon bracelet on their wrists in the 1980s, RSI endeavors to be on the forefront of the latest trends.
