PointsBet reports record quarter for net win as Canada igaming soars
ASX-listed operator says it expects to be close to EBITDA breakeven by April with marketing spend reductions and a focus on “positive” customers
PointsBet has reported a record net win quarter for fiscal Q2 2024 after a surge in igaming performance in Canada helped boost the firm’s fortunes.
Total group net win jumped from A$62.8m to A$69.9m (£36.3m), representing an 11% year-on-year increase for the operator.
With the group now solely operating in its native Australia and Canada following the sale of its US arm to Fanatics for $225m, the latter rose to the fore during the reporting period.
Net win from Canada increased 109% YoY from A$5m to A$10.5m on the back of a significant 119% leap in igaming net win from A$2.9m to A$6.4m.
While sports betting handle was down some 7% to A$74.8m, net win leapt during the quarter by 94% from A$2.1m to A$4m, with a corresponding net win margin of 5.4%.
Additionally, the in-play mix of sports betting handle increased to 65% during the period.
PointsBet noted it was a record quarter for both igaming and sports betting in Canada, with actives up 18% quarter on quarter (QoQ) to 38,627.
The operator also reported the highest quarterly number of first-time bettors in Ontario since launching in the market in April 2022.
Looking at Australia, net win improved slightly YoY, increasing 3% from A$57.7m to A$59.5m.
Similarly, to Canada, handle was down by 4% to A$938.5m.
On customers Down Under, PointsBet confirmed that actives slipped 7% QoQ to 218,288.
However, management said there had been an increase in “positive” net win actives and a reduction in “negative” net win actives.
The firm said it expects actives to return to growth in H2, while “maintaining the improved client mix”.
Looking ahead, PointsBet said it expects full-year (FY) 2024 net win to be between 10% and 20% higher than FY2023.
Additionally, marketing expenses are expected to shrink by between 15% and 20% as the firm looks to be close to breakeven from April with EBITDA.
PointsBet expects to be able to deliver a positive group EBITDA in FY 2025. The company’s shares rose 2.73% to A$0.94 in trading today.