NorthStar points to growth in preliminary Q4 results
NorthStar Gaming is anticipating an increase in total wagers, revenue and gross margin for the fourth quarter of 2024, according to unaudited preliminary results.
Total wagers at Northstarbets.ca are expected to be approximately CAD$303 million for the period ending December 31 – a 42% year-over-year increase (CAD$213.3 million).
Revenue (including managed services fees, and gross gaming revenue net of bonuses, promotional costs and free bets) is expected to be CAD$9.6 million, a 47.6% year-over-year increase from CAD$6.5 million in the fourth quarter of 2023.
Gross margin is expected to be CAD$4.4 million, a 76% increase from CAD$2.5 million in the final quarter of 2023.
In the third quarter, through September 30, 2024, the company reported a net loss of CAD$3.1 million, an improvement on the previous year’s CAD$4.2 million. Today’s preliminary results didn’t touch on net loss.
“We capped off a great year with the best quarter in the company’s history,” said Michael Moskowitz, Chair and Chief Executive Officer of NorthStar. “Much of our focus in 2024 was on product innovation and simplifying the customer experience, and we are seeing the results through the growth of our business. Record gross margins demonstrate the ability of our model to deliver operating leverage as the business scales.”
Last month, NorthStar Gaming Holdings announced it had raised CAD$43.4 million in long-term debt financing, in part to fuel growth initiatives.
The company also released preliminary results for the year ended December 31, 2024, with a 51% year-over-year increase in total wagers (CAD$980 million), 53.1% year-over-year increase in revenue for the full year 2024 (CAD$29.7 million), and a 76% increase in gross margin (CAD$12.5 million) compared to full year 2023.
“We are very excited to enter 2025 with strong momentum at our backs,” said Moskowitz. “With our recent financing, we believe we have the funding in place to reach profitability based on the current business platform. We intend to pursue aggressive growth and introduce our premium igaming platform to more Canadians, a strategy which we expect will continue to deliver strong year-over-year growth each quarter while maintaining effective control of costs.”
Mark Keast is based in Toronto, Ontario, Canada and covers the Canadian digital gaming industry for COMPLETE iGAMING. Mark is a long-time sportswriter and editor, most notably with the Toronto Sun and Toronto Star.
