PointsBet Slashes Net Loss in H1 After US Business Sale

In a strategic move to streamline its operations, PointsBet Holdings successfully divested its US business, leading to a substantial decrease in its net loss by 79.6% to AU$36.4m in the first half of the 2024 financial year. The sale, valued at $225.0m, saw Fanatics Betting and Gaming (FBG) acquire PointsBet US in August 2023, with the PointsBet brand being phased out across various US states.

Despite the divestiture, PointsBet reported record revenue in Australia and significant growth in Canada during the first half of the fiscal year. Statutory revenue from continuing operations surged 6.7% to AU$117.9m, driven by a remarkable performance in Australia, where revenue climbed 6.7% to $101.7m. Additionally, the Canadian segment witnessed a staggering 137.3% year-on-year revenue increase to $15.9m.

PointsBet's efforts to optimize costs were reflected in a 29.2% reduction in total operating expenses to $72.1m in H1. This included a significant cut in sales and marketing expenditure by 30.2% to $42.4m. As a result, the net loss for H1 significantly decreased from $178.2m to $36.4m, showcasing the company's improved financial stability.

In other developments, PointsBet announced the appointment of Daniel Lucas as its new group chief technology officer, effective from 1 September. Lucas brings extensive experience from his previous roles at Flutter and SportsBet, further strengthening PointsBet's technological capabilities.

The strategic sale of its US business coupled with robust performance in Australia and Canada underscores PointsBet's resilience and strategic focus amidst evolving market dynamics.