Rush Street Interactive still expects long-term earning targets

Rush Street Interactive (RSI) said that the company is still on track to reach long-term earning targets after the financial reports for the first half and Q2 of 2022. The report showed RSI losing net income and having negative adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).

Despite that, the company has said that it is still growing. “We are continuing to build a global business,” Richard Schwartz, RSI’s chief executive, said.

Schwartz also added that after their Canada launch in Ontario as well as in Mexico, RSI is now operating in a total of four countries, hence giving the company “a diverse set of growth opportunities.”

Moreover, now that RSI’s operation goes beyond the U.S., Schwartz said that RSI is “well-positioned” to meet its objectives of “adjusted EBITDA profitability for the second half of 2023.”

RSI reported that all of its six markets had shown profits in the 2022 Q2. Those markets were Pennsylvania, New Jersey, Michigan, Illinois, West Virginia, and Colombia (South America). West Virginia had become profitable after only one year.

As for the loss, RSI attributed it to the increase in operating costs.

The 2022 Q2 report showed that the company earned $143,7 million this year, which was 17 percent higher than last year’s Q2. It was also RSI’s new highest quarterly revenue.

However, the operational cost had increased to $169,5 million. With additional expenses, their pre-EBITDA loss was $26 million compared to the $12,2 million loss last year.

After the half-year and Q2 reports, RSI adjusted the upper range of its revenue projection. The operator’s current target revenue ranges between $600 million and $630 million. Before that, the 2022 guidance was between $600 million and $650 million.

In the second quarter of this year, RSI recorded 133,000 monthly active users. The average revenue for each user was $325. The gaming company has expanded its business to retail sports betting as well.

“Looking forward, we are confident heading into the back half of the year and what it holds for RSI, as many of our recently launched markets will be entering their first full football and soccer seasons,” Schwartz remarked.