PointsBet total net win grows 18% in fiscal Q1 as business embarks on post-US journey
Canadian operations lead the way with 212% YoY growth as Australian division reports 11% jump
PointsBet has reported an 18% year-on-year (YoY) increase in its total net win to A$58.2m in its fiscal Q1 2024 thanks to a strong performance in the group’s Canadian operations.
Releasing its first financial report without the US division, which was sold to Fanatics for US$225m in June, PointsBet revealed a 136% YoY rise in its group igaming net win, which rose to A$3m in the Q1 FY2024 period.
PointsBet’s igaming net win exceeded its sports betting total net win, which jumped 15% YoY to A$55.1m in the same period. The firm’s sports betting turnover dipped 3% YoY from a Q1 FY2023 of A$632.9m to A$611m in Q1 FY2024.
Q1 FY2024 saw strong growth in PointsBet’s Canadian division, with triple-digit YoY percentage increases across all net win metrics.
Canadian total net win rocketed 212% YoY to A$5.4m, with growth across both igaming and sports betting net win.
Canadian sports betting net win jumped 440% YoY to A$2.3m, buoyed by a 111% rise in sportsbook turnover, which rose to A$44.2m. PointsBet’s Canadian igaming division saw a 136% YoY increase in its net win which rose to A$3m from A$1.3m in Q1 FY2023
The percentage of PointsBet Canada’s sportsbook handle generated from in-play bets grew to 68% in Q1 FY2024, up from 59% in the previous period, while gross win margin increased to 8.3% off the back of improved parlay betting numbers.
Cash-active client numbers rose 8% in Canada to 32,864 in Q1 FY2024, with Canadian marketing expenses shrinking 7% YoY to C$5.1m over the same period.
PointsBet’s Australian division, which comprises solely of a sports betting operation, recorded an 11% YoY increase in its net win to A$52.8m, despite a 7% drop in turnover/handle, which fell to A$566.9m.
Australian cash active client numbers decreased slightly by 1.5% YoY to 235,113, while Australian marketing expenses dropped 41% to A$41.8m due to PointsBet opting for a “more efficient” marketing mix while at the same time simultaneously maintaining brand consideration.
PointsBet confirmed its expectation that FY2024 total net win will be 10% to 20% higher than FY2023, with group EBITDA to be at close to or at breakeven from April 2024.
PointsBet said it anticipates a positive group EBITDA in fiscal year 2025.
Updating the market on the sale of the US business, PointsBet confirmed receipt of the US$175m initial consideration from Fanatics Betting and Gaming, with 10 out of 14 US state licences transferred over to Fanatics ownership.
Payment of the remaining US$50m consideration in the sale is expected to take place during Q3 of PointsBet’s fiscal year 2024.