NorthStar Gaming Holdings is the latest company to be looking west, as Alberta ramps up toward a market launch, reporting significant growth for both Q2 and the first six months of fiscal 2024.
For the second quarter (ended June 30), the company reported revenue of $7.5 million CAD in revenue (including managed services fees, net of bonuses, promotional costs, and free bets), a 61 percent increase from Q2 2023. Total wagers at Northstarbets.ca were $225.5 million in Q2, a 41 percent increase year-over-year, and gross margin was $3.2 million in Q2 2024, a 69 percent year-over-year increase. Active players grew 48 per cent, along with a 12 percent decline in cost per acquisition of a customer.
“We are building on our momentum with another record quarter, highlighted by growth in excess of 60% for both revenue and gross margin,” said Michael Moskowitz, Chair and CEO of NorthStar. “Top-line growth continues to outpace expenses as we leverage our existing resources to scale the business efficiently, demonstrating the considerable upside in our business model.”
Moskowitz said NorthStar is outpacing the Ontario market when it comes to growth – 41 and 58 percent in total wagers and GGR, versus 32 and 34 per cent in Q2 2024, respectively, province-wide reported by iGaming Ontario.
During the earnings call, Moskowitz said Alberta is a market they’re keeping an eye on, referring to it as “very attractive,” pointing out that he expects the western province to take a similar approach in their rollout to Ontario’s. Moskowitz said one of their objectives is to build the brand and customer base outside Ontario.
“Just over two years since the launch of NorthStar Bets, our online betting platform stands strong against major international competitors,” he said. “Our premium offering has enabled us to outperform the Ontario market on key metrics like total wagers and gross gaming revenue. As we continue to innovate and provide unique content and outstanding customer service, we are enthusiastic about our prospects for continued growth.”
The company reported a 62 percent year-over-year increase in revenue ($13.4 million) over the first six months of the fiscal 2024 year, a 48 percent increase year-over-year in total wagers ($443.5 million), and a 77 percent increase in gross margin ($5.4 million) year over year.
