RSI slips to net loss despite 75.3% revenue jump in FY21

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Total revenue for the 12 months through to 31 December 2021 amounted to $488.1m (£364.1m/€439.9m), up from $278.5m in the previous financial year and in line with updated guidance issued in November.

RSI did not publish a full breakdown of its revenue for the year, but it did note that revenue grew sequentially in all of the markets in which it operates, while it was also able to expand into a number of new jurisdictions.

The operator launched online sportsbooks in Arizona and Connecticut during 2021, while it also agreed deals for online casino launches in both Mexico and Canada’s Ontario province

Shortly after the year end, RSI rolled out online sportsbooks in both New York and Louisiana following the launch of legal online sports betting in both states. In addition, RSI last month partnered Penn National Gaming to secure market access in Ohio, Maryland and Missouri.

This meant RSI now offers online sports betting in 13 separate markets, with market access deals in place in another 10 jurisdictions. RSI has also launched online casino in five markets, with access agreements for a further 15, while it offers retail sports betting in six markets and has agreed access deals in another three markets.

Looking at spending for the year and total operating costs were 41.4% higher at $582.4m.

Adjusted earnings before interest, tax, depreciation and amortisation (EBTIDA) – which takes into account some, but not all, of these operating costs – dropped from $4.4m in 2020 to a loss of $65.1m.

RSI also noted $27.9m in other expenses, with $41.8m in change in fair value of warrant liabilities offsetting a $13.7m loss associated with earnout interest liabilities and $187,000 in interest expenses.

This left a pre-tax loss of $66.4m, almost half the $128.7m loss posted at the end of 2020. RSI paid $4.7m in income tax and despite noting $51.6m in additional profit attributable to non-controlling assets, RSI ended the year with a net loss of $19.5m, compared to a profit of $1.1m in the previous year.

In terms of fourth-quarter performance, revenue for the three months to 31 December was 30.6% higher at $130.6m.

Operating costs increased 16.8% to $167.6m while adjusted EBITDA loss widened from $1.3m to $31.2m. Other expenses amounted to $146,000, leaving a pre-tax loss of $37.2m, a slight improvement on $38.7m in the previous year.

RSI paid $907,000 in tax, which, after also including profit attributable to non-controlling assets, meant it ended the quarter with a net loss of $10.4m, compared to a $1.1m profit in 2020.

“We are continuing our disciplined approach of balancing profitability from existing markets and investing in new market launches,” RSI chief executive Richard Schwartz said. “RSI’s consumer experience leverages our best-in-class technology and now operates successfully in 14 total markets compared to only six at the end of 2020. 

“Our track record demonstrates that we have been highly successful stewards of capital for our investors. Delivering strong shareholder returns remains our priority.

“On the technology and product side, we continue to enhance our offerings and provide a best-in-class gaming experience to our customers. As planned, we went live with our integrated iOS sportsbook-casino app near the end of 2021. 

“During the first half of 2022 we look forward to expanding into Canada and Mexico with our online casino and sportsbook sites and apps in these two large population markets where we are well positioned to achieve success.”

RSI also issued guidance for the 2022 financial year, during which it said revenue should be between $580m and $630. The midpoint of this range – $605.0m – would represent a year-on-year increase of 24.0%.

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