NorthStar Gaming Registers Losses in Second Quarter

NorthStar Gaming, the Canadian online casino and sportsbook operator based in Toronto, has announced its financial results for the second quarter of 2023, registering losses despite very high revenues.

The Canadian company reported that its revenue, handle and gross margin all increased in the second quarter as it registered more customers and higher wagering activity. However, the business still recorded losses of 4.8 million dollars during the quarter.

Michael Moskowitz, the Chief Executive Officer and Chairman of NorthStar Gaming, pointed out that having integrated editorial content in the company’s gaming platform contributed to the rise in revenue as customers are “looking for insights to improve their betting experience.”

The NorthStar Gaming CEO also underlined how recent merger & acquisition activity is supposed to support the future growth of the company. In fact, during the second quarter the Canadian company completed the acquisition of Slapshot Media, an iGaming marketing and managed services company, as it aimed to expand outside the boundaries of Ontario.

The Canadian company also has a strategic partnership with Playtech, the global gaming giant which supplies slot games and live casino content to online casinos from all around the world. Moreover, in June 2023 NorthStar Gaming received a strategic marketing contribution from Playtech.

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Despite the increases in revenue and wagering activity, NorthStar Gaming still recorded a loss of 4.6 million Canadian dollars during the second quarter, significantly higher than the 527,000 Canadian dollars that were lost in the same quarter of the previous year.

That was mainly due to the company’s costs, with general and administrative costs particularly showing an increase. In fact, those doubled to 3.8 million Canadian dollars from just 1.3 million in the same quarter last year, while marketing costs decreased to 2.6 million Canadian dollars from 4.6 million.

Overall, the company’s costs went up by 17 percent to 6.4 million Canadian dollars during the second quarter of 2023, compared to the 5.5 million dollars that were spent in the second quarter of 2022.

For the full first six months of the year, NorthStar Gaming reported revenue of 8.3 million Canadian dollars, with a loss of 13.5 million dollars. The company also announced that it is looking to secure 10 million Canadian dollars in financing through the issuing of shares and also by entering into a new debt agreement.

Source:

“NorthStar Gaming Reports Record Wagering and Gaming Revenue in Second Quarter of 2023“, northstargaming.ca, August 24, 2023.