PointsBet enjoys bumper start to new financial year as US and Canadian numbers rocket
Australia-headquartered operator reports double-digit growth in both markets as company net win from igaming jumps 287%
PointsBet has reported double-digit turnover growth in its US and Canadian operations, with rises powering the group to an 18% year-on-year (YoY) increase in its Q1 FY23 turnover.
Releasing its latest set of financial results, the ASX-listed operator reported turnover of A$1.1bn (£644.7m).
These increases were buoyed in part by turnover growth in the US, which rose 50% YoY to A$523.8m, and the Canadian market, which saw turnover growth of 31% to A$20.9m on a quarter on quarter (QoQ) basis.
Total net win at a group level rose by 13% YoY to A$78.8m during Q1 FY23, with standout net win growth occurring in igaming, which rose by 287% to A$8.5m over the period.
Group net win derived from sports betting grew by a more modest 4% YoY during Q1 FY23 to A$70.3m.
At a divisional level, PointsBet’s US operations once again proved to be the strongest division for the group, reporting 101% YoY growth in total net win, which jumped to A$29.5m from a prior high of just A$14.7m.
igaming led the charge for PointsBet US, delivering 229% YoY growth in net win to A$7.2m, while sports betting operations in the US reported an increase of 78% to A$22.3m over the same comparable period.
PointsBet Canadian operations, which encompasses its Ontario assets, reported strong QoQ growth in Q1 FY23, with total net win rocketing by 887% to A$1.7m.
Drilling down into operational areas, net win from igaming made up the lion’s share of this figure, amounting to A$1.3m, and increasing by 96% on a QoQ basis, with sports betting net win delivering the remaining A$0.4m.
Sports betting gross win in the Canadian division amounted to A$1.6m, up by 138% on a QoQ basis.
In contrast to the US and Canadian divisions which both saw growth, PointsBet’s native Australia division saw losses in all key metrics on a YoY basis, with gross win and net win from sports betting dropping by 17% and 13%, respectively.
PointsBet spent A$25.2m in marketing expenses in Australia, dropping to $22.8m in the US and just C$5.5m in the Canadian market.
PointsBet global CEO Sam Swannel hailed efficiencies in both technology and marketing and their impact on growth, particularly in the US.
“It’s clear from our results in the US that we are delivering on our stated aim of growing net win,” Swannell explained.
“We invested in our team and in our technology and products and that investment is delivering revenue growth. Our marketing is more targeted and this has allowed us to deliver this revenue growth with a reduced marketing spend compared to last year.”
He continued: “Projected estimates that the June and September quarters are equal in terms of being low season, whereas they estimate the December quarter to represent 1/3 of annual handle and revenue both in the US and globally.
“We’re excited to see the continued revenue growth that we can achieve this quarter on the back of our ever-improving product and execution,” Swannell added.