Rush Street Interactive has reported that its second-quarter in 2022 also resulted in a net loss. The Q2 results state that the company’s net loss is $28.3 million and even though revenue has risen 17% YoY (from $122.8 million to $143.7 million), the cost of advertising and promotions rose by 20% as well.
The Second Quarter Is a Major Improvement From the First Quarter of 2022
RSI’s EBITDA rose from $6.6 million to more than $18 million YoY, but even though the results show that there’s still room for improvement, they paint a far better picture than in Q1. The net loss in Q1 was $52.3 million, whereas its EBITDA was $43.4 million.
Back then, Kyle Sauers, the CFO of RSI stated that the company’s launch in New York was the “biggest contributor” to the net loss.
In Q2, the cost of advertising and promotions declined compared to Q1 and Richard Schwartz the CEO of RSI, stated that the company has made progress toward its “profitability goals.” He also added that apart from the 5 markets that showed sequential profitability, Q2 resulted in one additional market being positive in profit.
Schwartz stated that RSI also managed to double down on its international reach as it launched in Mexico and Ontario, both of which are “large population markets.”
In terms of future goals, Schwartz said that RSI is confident for the second half of 2022 as football and soccer seasons are about to start in the company’s recently launched markets.
RSI Expects to Generate More Than $600 Million in Revenue for the Year
According to RSI, the company’s revenue for 2022 is set to be between $600 million and $630 million. After all, RSI may have spent a lot of money on advertising, but that effort seems to be paying off, especially in the US and Canada.
According to the Q2 report, the number of real-money monthly active users was 133,000, which is a 35% YoY increase. The average revenue per monthly active user (ARPMAU) was $325, up 23% sequentially. Not only that, but RSI had massive success across the US recently.
RSI expanded its online wagering experience in West Virginia as it added online betting to its online casino site. It also acquired Poker Night and expanded its content production and creation capabilities. The company showed that it is a strong advocate for responsible gambling and it showed that by being the first entity in the US to launch the player protection software by Neccton.
Finally, RSI partnered with Bingo World to open a BetRivers retail sportsbook in Maryland. Bingo World’s president, Randy Clemens, stated that together with RSI, both parties will be able to provide bettors with a “world-class in-person sports betting experience” at BetRivers’ establishment.