PointsBet reports A$107m in fiscal 2023 losses as it looks to post-US future
Australian-listed firm confident on success of its Canadian and home market as Fanatics purchase approved
PointsBet has reported a 424% increase in annual losses from its continuing operations as it enters into a new era after selling its US business to Fanatics.
The firm confirmed losses from its Australian and Canadian operations increased from A$20.6m (£10.5m) to A$107.9m in full-year (FY) 2023.
These losses were paired with a 117% decrease in FY 2023 statutory EBITDA from A$26.2m to A$57m.
Consolidated EBITDA losses, including the US division, amounted to A$230.6m, which was within PointsBet’s guidance.
Group revenue from continuing operations increased 8% from A$195.4m to A$210.3m on the back of strong growth in Canada.
Canadian revenue soared more than 10,000% from A$200,000 to A$18.2m, having launched in April 2022, while Australian revenue dipped slightly by 2% to A$192.1m.
With the $225m sale of the US-facing business to Fanatics having been approved by shareholders this week, PointsBet detailed the performance of its operations stateside for the final time.
Total net win jumped 72% year-on-year (YoY) to A$161.1m, which included a 122% increase in igaming net win to A$43.8m while sports betting net win increased 58% to A$117.3m.
Looking to FY 2024, PointsBet is expecting total net win to be 10% to 20% higher than FY 2023, with group EBITDA to be at, or close to, breakeven from April.
The group is also plotting to secure a fourth-place position in Australia with the operator already holding a 5% market share.
In a joint letter, CEO Sam Swanell and chair Brett Paton championed the future of the group after the sale of the US business.
The duo said: “The Canadian business provides shareholders continued exposure to the North American market through a jurisdiction that is more attractive than most US states.
“The lower capital requirements and higher operating margins benefited from lower gaming tax relative to most US states to create strong prospects for attractive future economics with additional provinces going live over the next two years.
“Our technology is a real competitive advantage in both markets.
“We believe the early stage of the Canadian business compliments our more mature Australian business, as well as providing an opportunity to leverage attractive features of our tech stack that aren’t available in the Australian market such as igaming and online live betting,” they added.