PointsBet Posts Q3 Results, Expresses Doubt about Further Tax Hikes

Australian iGaming and sports betting operator PointsBet has published its financial results for Q3 FY24, reporting positive trends across the board. In addition to posting favorable results, the company revealed that it is not too concerned about potential tax hikes in Australia.

PointsBet’s report outlines a total sports betting handle of AUD 673.4 million ($437.6 million), representing a 7% increase. Net win from the vertical stood at AUD 65.3 million ($42.4 million), translating into an increase of 22%.

iGaming net win, meanwhile, skyrocketed by 52% to AUD 5.5 million ($3.5 million). In total, the company reported a total net win of AUD 70.6 million ($45.8 million) for the period. This figure notably marks an increase of 24%.

PointsBet continues its strong momentum, accelerating its expansion from the 14% growth delivered in the first half of the fiscal year. The company also reported a net cash flow of a record-breaking AUD 2 million, which is another significant milestone for the business.

PointsBet also re-confirmed its FY24 guidance, saying that it expects a normalized group EBITDA loss of between AUD 9 million and AUD 14 million ($5.8-$9.1 million). The company also confirmed that it expects to deliver positive normalized group EBITDA in FY25.

As of March 2024, PointsBet had AUD 67.2 million ($43.6 million) of statutory corporate cash with adjusted corporate cash of AUD 74.7 million ($48.5 million). PointsBet also pointed out that this was its first positive net cash flow quarter.

PointsBet Is Not Concerned about Tax Hikes

During an analyst call after the publication of the results, Sam Swannell, CEO of PointsBet, expressed doubt that Australia will introduce further tax increases. The discussion came amid Victoria’s preparation to increase taxes in July.

For context, the Australian state is planning to raise its point of consumption tax from 10% to 15% in order to align itself with other regions.

Swannell explained that he doubts that additional tax hikes will follow. He said that the horseracing authorities must be aware of the negative impacts that such increases may cause.  

Swannell added that his team is excited about the future of the company and the recent sale of US assets. The gambling company recently opted to sell its US-facing business to Fanatics and shift its focus to more stable markets.

The transaction was finalized on April 4, marking a new era for both PointsBet and Fanatics.