Growth in wagers, gross gaming revenue and completion of strategic acquisition positions NorthStar for further market expansion
Toronto, Ontario--(Newsfile Corp. - May 24, 2023) - NorthStar Gaming Holdings Inc. (TSXV: BET) ("NorthStar", "NGHI" or the "Company") today released the financial results for the three-month period ended March 31, 2023. All dollar figures are quoted in Canadian dollars.
Highlights for the first quarter ended March 31, 2023:
- Total wagers (1) were $139.5 million in Q1 2023, an increase of 24% from Q4 2022.
- Gross gaming revenue (2) was $4.4 million in Q1 2023, an increase of 8% over Q4 2022.
- Gross margin was $1.2 million in Q1 2023, an increase of 20% from Q4 2022.
Subsequent event to Q1 2023:
On May 8, 2023, the Company completed its acquisition of Slapshot Media Inc., a Canadian iGaming marketing and managed services company that specializes in providing managed services to Spreads.ca. The goal of this strategic acquisition was to open up the Canadian market to the NorthStar brand and to materially expand the addressable market available to NorthStar via its relationship with Spreads.ca.
"Q1 was another consecutive quarter of growth and gross margin expansion for our business as our unique positioning at the centre of both iGaming and media has continued to pay dividends," said Michael Moskowitz, Chief Executive Officer and a founding partner of NorthStar. "We are strategically focussed on continuing to grow our player base in Ontario and beyond as we leverage our recent acquisition of Slapshot Media Inc. to introduce players outside of Ontario to NorthStar's brand."
Additional Information
For additional information, please refer to Company's condensed consolidated interim financial statements for the three-month period ended March 31, 2023, and the corresponding interim management's discussion and analysis ("MD&A"). These documents are available on SEDAR at www.sedar.com, and on the Company's corporate website at www.northstargaming.ca.
About NorthStar
NorthStar proudly owns and operates NorthStar Bets, a made-in-Ontario casino and sportsbook gaming platform that provides players with a uniquely local, premier user experience. The NorthStar Bets sportsbook provides real-time news, stats, analysis and scores directly in the betting environment along with the most popular online casino games. NorthStar also provides managed services to Spreads.ca an iGaming site owned and operated by the Abenaki Council of Wolinak.
A Canadian company, NorthStar is uniquely positioned to become a convergence leader in the intersection of sports media and sports wagering thanks to its partnerships and agreements with leading media companies. NorthStar is committed to operating at the highest level of responsible gaming standards.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Non-IFRS Financial Measures
Statements in this news release make reference to "total wagers" and "gross gaming revenue", which are non-IFRS (as defined herein) measures that the Company believes are appropriate to provide meaningful comparison with, and to enhance an overall understanding of, the Company's past financial performance and prospects for the future. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. Wagers is calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Gross gaming revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.
Cautionary Note Regarding Forward-Looking Information and Statements
This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: financial guidance for 2023, expected performance of the Company's business, expansion into new markets and future growth opportunities and expected benefits of transactions. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing readers to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; and the ability of the Company to implement its business strategies. NorthStar believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Information contained in forward-looking statements in this communication are provided as of the date hereof and NorthStar disclaims any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.
For further information:
NorthStar Gaming
Ben Powell
VP Corporate Development
Investorrelations@northstargaming.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167359
