PointsBet Posts H1 Results, Records Sharp Net Loss Decrease

PointsBet, which recently posted its Q2 results, has officially posted its H1 results, reporting a significant net loss decrease. The improved results were attributed to the recent sale of PointsBet’s US business to Fanatics Betting and Gaming.

As PointsBet continued its business in Australia and Canada, it recorded statutory revenue of AUD 117.9 million ($77.2 million), representing a 6.7% increase from the prior-year period. The company recorded high activity in its NFL and NBA products in Australia, where it posted revenue of AUD 101.7 million ($66.7 million). EBITDA from PointsBet’s Australian operations stood at AUD 900,000 ($560,000), far exceeding the AUD 20.2 million ($13.2 million) EBITDA loss recorded in H1 2022/23.

Of note, the operator managed to record growth in spite of the overall turnover drop in the country. This was also the first half-year in which PointsBet Australia recorded a positive EBITDA.

In the meantime, PointsBet’s Canadian operations brought in revenue of AUD 15.9 million ($10.4 million), demonstrating a stellar 138% year-on-year improvement. Both the iGaming and sports betting segments experienced a rise in turnover, underpinned by new partnerships in the country.

As EBITDA loss in Canada continued to decrease, PointsBet noted that it is on the path to achieve or be close to EBITDA breakeven in FY25. For reference, the company reported EBITDA loss of AUD 12 million ($7.9 million) in the country.

PointsBet recorded lower marketing expenses in both regions. Operating expenses also declined, standing at AUD 72.1 million ($47.3 million) for the quarter. This marks a year-on-year decrease of almost 30%. Net finance costs also plummeted, allowing the company to record an H1 loss of only AUD 36.4 million ($23.9 million). For reference, the gambling company experienced losses of AUD 178.2 million ($116.8 million) a year ago.

The Sale of the US Assets Improved PointsBet’s Business

The drastic decline in losses was attributed to the sale of PointsBet US to Fanatics and the resilience of the former company’s business in Australia and Canada.

The sale of the company’s US assets saw Fanatics acquire PointsBet US for $225 million, solidifying its presence in America. Fanatics has already begun to rebrand PointsBet US, migrating former PointsBet users to its new sportsbook app. PointsBet is still live in a few states as Fanatics is yet to complete the transition.

The sale of PointsBet US was a strategic move that allowed PointsBet to exit the highly competitive American market and focus its business on markets where it already commands a significant presence. Despite a slight dip in turnover, the departure from the US slashed the company’s losses, providing it with an optimistic outlook.

In other news, PointsBet just appointed Daniel Lucas as its new chief technology officer, parting ways with Jerry Bowskill.