PointsBet total net win grows 19% in fiscal Q4 as US division shines
Group igaming net win rises by 122% with Australian and Canadian operations reporting 453% growth in the vertical
PointsBet has reported a 19% year-on-year (YoY) increase in its total net win to A$102.3m (£53m) in its fiscal Q4 2023, with strong performance in the group’s US division and in igaming.
Releasing its latest financials for the period, clarify fiscal year dates, PointsBet revealed a 122% YoY rise in its group igaming net win, which rose to A$16.2m (£8.3m) in the Q4 FY2023 period, surpassing the firm’s sports betting total net win which jumped just 10% YoY to A$86.1m (£44.5m) in the same period.
At a divisional level, PointsBet’s US division grew the most in the total net win stakes, rising 35% on a YoY basis to A$41.2m over fiscal Q4 2023, with double-digit percentage increases reported in both sportsbook and igaming.
US igaming net win jumped 89% YoY in Q4 FY23 to A$12.6m, while sports betting net win rose 20% YoY in the same period to A$28.6m. US turnover from sports betting fell by 24% YoY in fiscal Q4 2023 to A$524.4m.
PointsBet’s US division is set to be acquired by Fanatics Betting and Gaming in September, with shareholders greenlighting a $225m deal for the business in June. The completion will take place in two stages, with an initial completion in September and a further secondary completion in March 2024.
Providing an update on the completion process, PointsBet revealed it had been “engaging well” with FBG’s representatives on the integration of the US division into Fanatics’ wider empire.
“Both organisations are very excited about what a combination of the Fanatics brand, database, and team, together with PointsBet’s technology, market access, and team can achieve in the US gaming market,” PointsBet said in its presentation.
In addition, PointsBet confirmed the US state-by-state regulatory approval processes for the transfer of licenses and approval for the transaction was “tracking as planned”, with approvals sought across sportsbook, igaming, and advanced deposit wagering licenses.
The combined Australian and Canadian divisions, which PointsBet will retain after the sale of the US division, saw a total net win increase of 7% YoY in Q4 FY2023 to A$230m, punctuated by a 1,652% increase in igaming net win and a 2% increase in sports betting net win over the same period.
Of the two divisions, PointsBet Canada was the clear leader, reporting 3,052% YoY growth in total net win over fiscal Q4 2023 to A$5.5m and a 453% uptick in igaming net win, which jumped to A$3.6m in Q4. PointsBet Canada sports betting turnover jumped 166% YoY to A$42.5m.
PointsBet Australia, which focuses solely on sports betting, reported a 1% uptick in net win from the vertical to A$55.6m, with its turnover slumping 16% YoY to A$502.3m.
In respect of the remaining businesses, PointsBet confirmed its expectation that total net win would increase between 10% and 20% in fiscal year 2024, with marketing expenditure dropping between 15% and 20% in the same period.
PointsBet has said it expects a significant cost reduction in technology, corporate, and capitalised technology staff costs in 2024, with an expectation to become EBITDA-breakeven from April 2024.
In addition to the reduction in marketing and technology costs, PointsBet’s global headcount will drop dramatically as a result of the sale, from 650 full-time employees to just 275 by the second completion in March 2024.