PointsBet has posted a AUD$32.3 million H1 loss and AUD$27.4 million net profit. The company is primed for more growth.
PointsBet Ends Fiscal Year With Net Loss And Revenue Increase
Sports Betting Operator PointsBet has reported an AUD$32.3 million loss for the first half of 2020/2021 financial year as a result of its expansion efforts in both the USA and Australia. Despite this, the company’s net revenue has actually increased substantially.
In the six months to 31 December, PointsBet’s net revenue skyrocketed to AUD$27.4 million – an increase of over 126% compared to the AUD$12.1 million generated in the corresponding period of 2018.
The operator performed especially well in Australia – its core market. H1 revenue jumped by 105% to $24.8 million, while turnover increased by 66.6% to $349.2 million. According to PointsBet, this increase is due to the substantial boost in its Australian customer base. By 31 December, the company saw a total of 81,014 registered users – a 76.8% increase year-on-year.
The booming player base is a result of the company’s increased client retention efforts as well as the several new products and updates it has recently introduced, PointsBet notes.
Continued Growth in US And Cost of Growth
In the US, the company managed to end the first half of the financial year with a $2.6 million net revenue. The result was carried primarily by its growing New Jersey business and its recent launch in Iowa.
This was PointsBet’s first full half-year of trading on the US market and things are looking up. The company is planning on expanding its market presence in the dynamic US gambling market by launching in an additional 11 states in the coming months.
The operator’s US customer base has expanded to 21,141 from the humble 35 in the early months of the 2019 fiscal year. This brings PointsBet’s total customer count to 102,155 users – an impressive 122.7% jump compared to H1 2019.
However, the company’s rapid expansion in the US and Austria has also been quite costly. Operating expenses have increased by 185.6% to $41.7 million, up from $14.6 million in the corresponding period of 2019. Marketing expenses are the biggest contributor to the company’s expenditure and are responsible for $20.6 million of the total.