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RSI on track for profitable second half after Q1 growth


Rush Street Interactive (RSI) remains on track to achieve profitability in the second half of the 2023 financial year following growth during the first quarter.

The business said it achieved continued profitable growth across a number of its core casino markets in the three months to March 31, including Ontario in Canada, Colombia and West Virginia in the US, with market share increasing sequentially in Q1.

RSI also extended its sports betting partnership with Kambi, with the latter to continue to provide its sportsbook engine to RSI in 15 US states as well as in Canada, Colombia, and Mexico.

While the business also announced a joint plan with the Connecticut Lottery Corporation to wind down their online and in-person sports betting partnership in the state towards the end of the quarter, chief executive Richard Schwartz said he was pleased with its long-term targets and growth plans.

“We are pleased with our first quarter results as we made great strides towards profitability with much improved adjusted EBITDA performance,” Schwartz said. “Results were strong across our business lines with revenue growth in both online casino and online sportsbook.

“On the back of these excellent results, we remain on track to achieving our goal of profitability for the second half of this year. We are staying disciplined in our approach and successfully balancing growth and profitability over the long run.”

RSI Q1 results

Looking at RSI’s performance in Q1, revenue amounted to $162.4m, an increase of 20.4% from $134.9m in the corresponding period last year.

Operating expenses in Q1 remained level at $184.4m, with a rise in revenue costs, general administration, and depreciation and amortization being offset by savings in advertising and promotions, with spend in this area down 25.3% to $49.9m.

This left an operating loss of $22.1m, a significant improvement on the $50.0m loss at the same point in 2022, while after accounting for $380,000 in interest income, pre-tax loss stood at $21.7m, compared to $50.3m last year.

RSI paid $2.8m in income tax in Q1, leaving a net loss of $24.5m, in contrast to the $52.3m loss posted at the of the first quarter of 2022. After removing $17.2m in losses attributable to non-controlling interests, net loss attributable to RSI was $7.3m, half the $14.7m loss in 2022.

In addition, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) loss for the quarter was $8.7m, compared to the $43.4m loss last year.

Looking to the full year, RSI said it expects revenue to amount to between $630.0m and $700.0m, which was unchanged from its previous guidance. The midpoint of this range, $665.0m, would represent a 12.3% increase from the $592.0m posted in 2022.

“Our results continue to show the approach is working well and we remain confident that our focused strategy will reward our shareholders over the long term,” Schwartz said.