"We capped off a great year with the best quarter in the Company's history," said Michael Moskowitz, Chair and CEO 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."
Preliminary Results for the Three Months Ended December 31, 2024 ("Q4 2024"):
Total Wagers2 at Northstarbets.ca are expected to be approximately $303 million in Q4 2024, a 42% increase compared to $213.3 million in Q4 2023.
Gross Gaming Revenue2 at Northstarbets.ca is expected to be approximately $10 million in Q4 2024, a 31.6% increase from $7.6 million in Q4 2023.
Revenue3 is expected to be approximately $9.6 million in Q4 2024, a 47.6% increase from $6.5 million in Q4 2023. Revenue in Q4 2024 is expected to include $1.6 million of managed services revenue, which compares to $0.2 million in Q4 2023.
Gross Margin is expected to be approximately $4.4 million, representing a 76% increase from $2.5 million in Q4 2023, while the Gross Margin percentage is expected to increase to approximately 46%, up from 39% in Q4 2023.
Preliminary Results for the Year Ended December 31, 2024 ("FY 2024"):
Total Wagers2 at Northstarbets.ca are expected to be approximately $980 million in FY 2024, a 51% increase compared to $648.8 million in the year ended December 31, 2023.
Gross Gaming Revenue2 at Northstarbets.ca is expected to be approximately $34 million in FY 2024, a 51% increase from $22.5 million in FY 2023.
Revenue3 is expected to be approximately $29.7 million in FY 2024, a 53.1% increase from $19.4 million in FY 2023.
Gross Margin is expected to be approximately $12.5 million, marking a 76% increase from $7.1 million in FY 2023, with the Gross Margin percentage expected to increase to 42%, up from 36% in FY 2023.
Debt Financing
On January 27, 2025, the Company announced that it has entered into a credit agreement (the "Credit Agreement") in respect of a senior secured first lien term loan facility providing for loans in an aggregate principal amount of up to $43.4 million CAD (being the approximate equivalent of $30 million USD). The Company expects that the Credit Agreement will strengthen its balance sheet and enable it to accelerate its growth initiatives.
"We are very excited to enter 2025 with strong momentum at our backs," added Mr. 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."
The Company expects to file its audited financial results for the year ended December 31, 2024 by the end of April 2025. Given the length of time before full results will be available, the Company has elected to announce these unaudited preliminary results in the interest of transparency for its investors.
About NorthStar
NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.
As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Non-IFRS Financial Measures
Throughout this document, management uses certain non-IFRS financial measures and supplementary financial measures to evaluate the performance of the Company. The terms "Gross Gaming Revenue" and "Total Wagers" are non-IFRS financial measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS and are, therefore, not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective and to discuss NorthStar's financial outlook. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including industry metrics, in the evaluation of companies in our industry. Management also uses non-IFRS measures and industry metrics in order to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation.
Total Wagers
Total Wagers is calculated as the total amount of money bet by customers in respect of bets that have settled in the applicable period. Total Wagers does not include free bets or other promotional incentives, nor money bet by customers in respect of bets that are open at period end. Total Wagers is used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures.
Gross Gaming Revenue
Gross Gaming Revenue is calculated as dollar amounts bet by customers less the dollar amounts paid out to the customers in respect of such bets which have settled in the applicable period.
Reconciliation of Non-IFRS Measures to IFRS Measures
In Q4 2024, the Company expects to report approximately $10Â million of Gross Gaming Revenue (approximately $34 million for the year FY 2024) and has provided a reconciliation to the most comparable IFRS financial measure (Revenue) as follows:
| $ Millions (unaudited) | Three months ended | Year ended |
Dec 31,
2024 | Dec 31,
2023 | Dec 31,
2024 | Dec 31,
2023 |
| Gross gaming revenue from wagered games | 10.0 | 7.6 | 34.0 | 22.5 |
| Bonuses, promotional costs and free bets | 2.0 | 1.3 | 6.6 | 3.6 |
| Sub-total Gaming revenue | 8.0 | 6.3 | 27.4 | 18.9 |
| Other revenue from managed services | 1.6 | 0.2 | 2.3 | 0.5 |
| Revenue | 9.6 | 6.5 | 29.7 | 19.4 |
| (1) These measures are not defined by IFRS, do not have standard meanings and may not be comparable with other industries or companies |
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Cautionary Note Regarding Forward-Looking Information and Statements
This communication contains "forward-looking information" within the meaning of applicable securities laws in Canada ("forward-looking statements"), including without limitation, statements with respect to the following: expected performance of the Company's business, the Company's growth plans being fully funded, expansion into new markets and future growth opportunities and expected benefits of transactions. The foregoing are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company's anticipated financial position, results of operations, and operating environment. Often, but not always, forward- looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management's opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward- looking information. Such factors include, among others, the following: risks related to the Company's business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the "Risk Factors" section of the Company's most recent annual information form, which is available under NorthStar's profile on SEDAR+ at www.sedarplus.com. Many of these risks are beyond the Company's control.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar's expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
________________________
1 See "Cautionary Note Regarding Forward-Looking Information and Statements" below.
2 Represents a Non-IFRS financial measure. See "Non-IFRS Financial Measures" below for more information.
3 Revenue includes managed services fees, and Gross Gaming Revenue net of bonuses, promotional costs and free bets.
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