PointsBet Posts Impressive Q2 FY23 Results

The global sports betting operator saw metrics increase across the board, with overall handle skyrocketing by 56%.

PointsBet Recorded Favorable Financial Results

As reported by the Australian company, PointsBet’s sports betting turnover for the final quarter of the year sat at $1.46 billion (in USD), representing a 56% year-on-year increase. Total gross win from the vertical, meanwhile, was $107 million, which marks a 14% increase from the respective prior-year period.

A huge part of the company’s annual turnover came from its US operations. PointsBet reported a turnover of $740 million from the United States, translating into a gross win of around $39 million. The turnover represented an annual growth of 75%, which the company attributed to its expanded operations in the region.

Australian turnover, meanwhile, was $661 million, up 29% year-on-year. Gross win remained more or less the same at $65 million.

Throughout 2022, the company launched its operations in several new US states and enjoyed a strong trading performance in October and November. PointsBet is now also available in Ontario where handle reached $56.7 million, a whopping 284% quarter-on-quarter increase. Gross win from the region was $2.5 million.

iGaming operations also performed favorably, with the company recording a total iGaming net win of $15.2 million for the quarter. More than half of this ($8.6 million) was contributed by the company’s US operations.

The Company Plans to Cut Its Marketing Spend as Shares Fluctuate

Other reported metrics included PointsBet’s forecasts for its marketing expenses for FY 2023. The company hopes that these will sit at around $63 million, down from $83 million in FT 2022. This projection was provided in contrast to the rising marketing spend which saw PointsBet pay more for marketing in Q2 2023 than it did in the previous quarter.

The cost of sales, meanwhile, increased from $28.8 million in Q2 2022 to $43.2 million in Q2 2023.

The company experienced some performance setbacks because of negative VIP variance but recorded overall favorable results despite the difficulties.

While the company posted record quarterly results, the company’s shares took a dip on January 31, 2023. The operator’s share price has been fluctuating throughout January and sits at $1.02 (in USD) as of the time of this writing.

In other news, two weeks ago, the company secured responsible gambling accreditation from the Responsible Gambling Council. The distinction was awarded to both PointsBet USA and PointsBet Canada, highlighting the company’s commitment to sustainability and player safety.