NorthStar’s revenue reaches C$19.4 million in first full year

Business

NorthStar Gaming CEO Michael Moskowitz said the company’s first full year, despite the Ontario-based business reporting a net loss of C$25.5 million (£14.9 million/€17.4 million/US$18.6 million) He praised the “very strong” growth in the business.

Revenues for the twelve months ended December 31, 2023 amounted to $19.4 million. That’s about a 240.4% increase from his $5.7 million the year before, when NorthStar debuted.

NorthStar officially launched in May 2022 with an online sportsbook and casino in Ontario, Canada. Immediately after this,Reverse business acquisition by Canadian real estate company Baden Resources.

NorthStar was only accessible in Ontario until October 2023, when the service was no longer offered.Expanded to all Canadian provinces and territories. This expansion clearly had a big impact on Northstar’s performance, and revenues skyrocketed.

Moskowitz said this was helped by a surge in customers as it expanded across Canada.

“We achieved very strong growth in our first full year of operations,” Moskowitz said. “Revenues and customers increased sequentially every quarter.

“Major achievements during the year include a stock listing, numerous product innovations to strengthen our online betting platform, strengthening strategic partnerships, and implementing a marketing plan that has resulted in an excellent return on investment. .”

Business Northstar celebrates Slapshot’s influence

Moskowitz also mentioned the company’s acquisition of Slapshot Media earlier this year. Slapshot provides marketing and operations management services to sports betting and gaming operators.

Incidentally, NorthStar used Slapshot Business to help expand its operations in Canada.

“The acquisition of Slapshot Media allows us to expand our addressable market through Indigenous-managed service contracts,” Moskowitz said.

“Our financial results and KPIs are beginning to demonstrate the strength of our business model. We have the people and systems in place to support significant expansion.

“As we expand our business, we expect to realize operating leverage as our revenues continue to grow faster than our expenses.”

Business Net loss widens despite increased revenue

Breaking down the full-year results, 12-month gaming revenue totaled $18.9 million. This was an increase of 231.6% year over year, driven by expansion across Canada. Gaming revenue comes from both sports betting and casinos.

The remaining $465,247 in revenue comes from managed services, namely Slapshot. As the transaction was not completed until mid-year, there was no year-over-year comparison in this area.

On the cost side, spending increased in many areas, primarily due to expansion into more regions. Operator participant fees jumped 207.7% to $4 million, and service provider fees more than doubled to $8.2 million.

Operating expenses increased 58.7% year over year to $33.8 million. The main expense here came from marketing, which cost him $14.1 million, which was only a slight increase over the previous year. However, general and administrative expenses increased by 63.8% to $11.3 million, with $2.8 million attributable to listing costs.

Net finance charges amounted to $1.2 million, and pre-tax loss for the year amounted to $25.5 million, wider than $20.2 million in 2023. However, like the previous year, Northstar paid no taxes, resulting in a net loss of $25.5 million.

NorthStar expands Playtech partnership

In related news this week, PlaytechExpanded strategic partnershipPlaytech Software Limited and NorthStar Ontario, a subsidiary of NorthStar.

The agreement, signed last June, is intended to accelerate Northstar’s player acquisition strategy in Ontario. In the first contract, his total services from Playtech Software were worth $4 million.

Playtech Software will now offer similar marketing services in Ontario, valued at up to $4 million, until October 31 of this year. Playtech Software will be reimbursed and compensated with a portion of the revenue generated from such marketing activities.

Separately, Northstar issued a $3 million unsecured interest-bearing promissory note to Playtech. Interest will accrue at an annual rate of 8.0% and will be paid in arrears after maturity.

Source of this program
“This is a great add-on.”
“NorthStar Gaming CEO Michael Moskowitz said that despite the Ontario-based business reporting a net loss of C$25.5m (£14.9m/€17.4m/US$18.6m), praised the company’s “very strong” growth in its first year of operations. ..”
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Source link: https://igamingbusiness.com/finance/full-year-results/northstar-revenue-hits-ca19m-in-first-full-year/

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