PointsBet CEO confident on post-US future and Banach opportunities
Sam Swanell says business is at an “important stage” as focus homes in on Australia and Canada
PointsBet CEO Sam Swanell has voiced his enthusiasm for the ongoing potential of PointsBet to shareholders following the sale of its US division to Fanatics Betting and Gaming earlier this year.
Speaking in his address to shareholders at PointsBet’s annual general meeting, Swanell began by stating the business was at an “important stage” following its disposal of US assets.
“Competing in the US online sports betting and igaming market required us to build a market-leading platform which has been consistently independently rated in the top three in the US. The strength of our technology has also been validated through our sale of the platform to Fanatics,” Swanell said.
“While we have provided Fanatics with a perpetual licence to our technology platform, importantly we retain ownership of this technology. That means we can develop and exploit it in a manner that creates the most value for PointsBet shareholders.”
In addition, Swanell drew upon Banach’s ‘Oddsfactory’ assets– which propel the group’s in-play betting offering in the US and globally – as an important source of value for the business in the post-Fanatics-sale environment.
“I believe it is important for shareholders to understand just how valuable our technology has become. It has been one of the critical features of our company and it bodes well for the value and the future of the Australian and Canadian businesses,” he remarked.
“We are also very efficient. Our technological foundation accelerates innovation and streamlines development. Fewer hands are needed in the process, which translates to cost savings and faster delivery of new product developments.
“The end product we have in the hands of our customers is very strong and getting stronger every month. Our front-end and back-end capabilities are driving our efficient revenue growth and will continue to do so,” the CEO added.
Looking ahead, Swanell suggested the Australian segment could deliver significant EBITDA in FY 2024, with the Canadian division reducing its losses throughout 2024 before breaking even from an EBITDA standpoint in 2025.
“Our strategy is clearly working, and I am very excited about our future in Australia and Canada. Our Australian operation has a strategically important place in the Australian wagering market,” he told shareholders.
“We intend to continue to grow our online share in this market from a current solid 5% position with the benefit of a more focused approach from a people, tech and product perspective.
“The Canadian business provides shareholders continued exposure to the North American market through a jurisdiction that is more attractive than most US states with no partner fees, an acceptable tax rate, and igaming complimenting sports betting for the entire market.
“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.
“We have a best-in-class team that will deliver shareholder value now and increasingly into the future,” the PointsBet CEO concluded.