NorthStar's First Full-Year Revenue Reaches CA$19.4 Million

NorthStar Gaming CEO Michael Moskowitz has lauded the operator's robust growth in its inaugural full year of operations, despite reporting a net loss of CA$25.5m (£14.9m/€17.4m/US$18.6m). Revenue for the 12-month period ending December 31, 2023, soared to $19.4m, marking a staggering 240.4% increase from the previous year's $5.7m, coinciding with NorthStar's debut.

Officially launched in May 2022, NorthStar unveiled its online sportsbook and casino in Ontario, swiftly followed by a reverse takeover by Canadian property entity Baden Resources. Initially confined to Ontario, NorthStar expanded its services nationwide in October 2023, igniting a surge in revenue.

Moskowitz attributed this growth to an influx of customers following the expansion across Canada, noting sequential increases in revenue and clientele throughout each quarter. He highlighted key milestones, including the public listing of shares, product innovations enhancing the betting platform, fortified strategic partnerships, and a lucrative marketing strategy yielding substantial returns.

Further bolstering its reach, NorthStar acquired Slapshot Media, a move instrumental in the Canadian expansion. The acquisition facilitated an expansion of the market through a First Nations-managed services arrangement, broadening NorthStar's operational scope.

Despite revenue growth, operational costs surged, primarily attributed to territorial expansion. Operator participant fees escalated by 207.7% to $4.0m, while service provider fees more than doubled to $8.2m. Operating expenses rose by 58.7% to $33.8m, driven by increased marketing and general administrative costs, alongside expenses incurred from public listing.

With net finance costs totaling $1.2m, the pre-tax loss for the year widened to $25.5m from $20.2m in 2023. However, consistent with the prior year, NorthStar remained exempt from tax, resulting in a net loss matching the pre-tax loss at $25.5m.]