PointsBet Sees Strong Growth in Canada, but Australian Turnover Declines
Date: 2023-10-25 Author: Dima Zakharov Categories: SPORTS BETTING, EVENTS
Positive Growth in Canada:
PointsBet reported a remarkable 111.4% increase in Canadian turnover, amounting to $44.2 million. The CEO, Sam Swanell, expressed confidence in the company's path to profitability in Canada.
Sale of PointsBet US:
Notably, this quarter marked the absence of PointsBet's US operations in its results. The company successfully sold PointsBet US to Fanatics for $225.0 million, after a bidding war with DraftKings.
Net Win Increases:
PointsBet's net win from sports betting operations grew by 14.7% to $55.1 million, and igaming net win soared by 130.7% to $3.0 million. This brought the total net win to $58.2 million, an increase of 18.0%.
Focus on Casino Offerings:
The CEO emphasized their efforts to enhance the casino product offering, a crucial element for success in Ontario. Improvements in games and bonuses aim to capture more market share.
Australian Market Performance:
In Australia, the sports betting net win increased by 11.1% to $52.8 million. Canada also saw substantial growth, with a net win of $2.3 million, primarily due to Ontario's re-regulation, which opened the legal igaming market.
Financials:
The operator recorded $58.3 million in receipts, with cost of sales at $22.1 million and sales and marketing costs at $21.4 million. Operating activities resulted in a net cash outflow of $10.4 million. However, the company expects positive operating cash flows in the coming quarters.
Future Projections:
PointsBet anticipates a 10%-20% increase in net win for FY24 compared to FY23, with reduced marketing expenses. Group EBITDA is expected to turn positive in FY25.
Conclusion:
PointsBet's quarterly results reflect its ambition to expand in the North American market and focus on improved casino offerings in Ontario.
