Rush Street Interactive 2021 revenue jumps 75% amid rising EBITDA losses
BetRivers operator lauds “disciplined” profitability approach as monthly active users grow 67%
Rush Street Interactive (RSI) has reported full-year 2021 revenue of $488.1m, a 75% year on year (YoY) increase.
Delivering its full-year and Q4 2021 update, the BetRivers and PlaySugarHouse operator confirmed 2021 net losses of $71.1m, down from a $131.6m net loss in 2020.
However, company adjusted EBITDA rocketed to a loss of $65.1m in 2021, up from a EBITDA loss of just $4.4.m in 2020.
One explanation is the increased adjusted advertising and promotional expenditure of the New York-listed firm during the last 12 months.
Adjusted advertising and promotional expense rocketed 231% during 2021 to $186.9m from a prior 2020 high of $56.5m.
RSI’s real-money monthly active users (MAUs) rose by 67% YoY in 2021, with average revenue per MAU up 2% over the same period to $346.
RSI has launched in several new US markets over the year, most notably Connecticut, where it partnered with the Connecticut Lottery Corporation (CLC), and this year in the highly-competitive sports betting market of New York.
At a Q4 2021 level, revenue grew by 31% YoY to $130.6m, while company net losses shrunk from a Q4 2020 loss of $41.6m to $38.1m in 2021.
Adjusted EBITDA losses increased from a Q4 2020 loss of $1.3m to $31.2m in Q4 2021, with adjusted advertising and promotional expenditure tripling over the same period to $64m.
MAUs rose 28% during Q4, with an average revenue per MAU of $327 in the period.
Despite the mounting EBITDA losses, RSI CEO Richard Schwartz remained confident in the firm’s stance, also confirming the acquisition of Malta-based poker site Run It Once Poker.
“We are continuing our disciplined approach of balancing profitability from existing markets and investing in new market launches,” Schwartz said.
“Our track record demonstrates that we have been highly successful stewards of capital for our investors. Delivering strong shareholder returns remains our priority.”
He continued: “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,” Schwartz added.
Following the results announcement, RSI shares are down 12.5% in pre-market trading on the New York Stock Exchange.