September 30, 2023
"At Rush Street Interactive we want to leverage the advantage we have in Latin America"

“At Rush Street Interactive we want to leverage the advantage we have in Latin America”

Rush Street Interactive's CEO, Richard Schwartz, stated that the online betting and gaming operator has been “very ” in Latin America and that, based on the financial results obtained in the second quarter of 2023, they will seek to “leverage the ” they have in the countries of said region.

“We want to leverage the advantage we have in Latin America. As you know, we've had a lot of success there and it's not a short-term program that we've put in place, it's really focused on the long term and we have a tremendous amount of talent and sophistication in how we operate there,” the executive said.

In a company podcast, Schwartz argued that Rush Street Interactive used as a reference that “Brazil just published its regulations after several years.” “It's a market with more than 200 million inhabitants, more than Colombia and Mexico combined, which about 180 million. So we have a great opportunity in Brazil,” he noted. 

He further pointed out that “Peru has 33 million inhabitants” and that, although the regulations that will govern the online are still needed, the laws that legalize it have already been approved.

“That market is to a regulatory process with high expectations and, perhaps as soon as the middle of next year, they should be launching in a regulated environment. Chile is making progress. Argentina as well,” he highlighted.

Regarding the Colombian market, where Rush Street Interactive has a regional headquarters, the executive hailed the “good results” obtained in the second quarter, “with a revenue growth of more than 30% over the previous year”. “During the quarter, we achieved a growth of almost 50% measured in Colombian pesos,” he said.

Rush Street Interactive headquarters in Colombia

Regarding its operations in Mexico, he indicated that they expect to see “an in contribution towards the second half of the year”. “Our approach here is similar to the strategy we executed in Colombia over a period of several years, which is to constantly localize the to foster a market-leading player and cultivate the RushBet brand,” he explained about the said market.

“So we have a lot of opportunities and we're evaluating each one and identifying the ones that make the most sense for us. But we're very excited about that region and believe we have an advantage over most of the sophisticated operators in the industry and the opportunity for really outstanding results there,” Schwartz concluded.

Q2 Results

Rush Street Interactive recently issued its financial report for the second quarter of 2023, a period in which it obtained revenue of $165.1 million, 15% more than in the previous year when it reached a figure of $143.7 million.

According to the report, the company also had a net loss of $16.7 million, an improvement over the loss of $28.3 million in the second quarter of 2022. They also highlighted that Adjusted EBITDA was positive by $1.2 million, compared to an adjusted EBITDA loss of $18.6 million the previous year.

Rush Street Interactive also reported that adjusted advertising and promotional expenses were $40.4 million during the second quarter of 2023, down slightly from $44.2 million for the same period in 2022.

According to the report, the average revenue per monthly active user in the States and Canada was $359 during the second quarter of 2023, a year-over-year increase of 11%.

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