PointsBet Posts Record-Breaking Q2 Results in Australia and Canada

PointsBet has published its Q2 report, posting record net win in both Australia and Canada. The company’s sports betting activities continued to underpin the results as both handle and net win increased. However, the biggest growth was recorded by PointsBet’s iGaming vertical.

Taking a look at how PointsBet performed in Australia, the company posted a net win of AUD 59.5 million ($39.15 million in USD, current rates). This figure, according to the company, represents a 3% year-on-year increase from the prior-year period.

At the same time, the company’s marketing expenses in the region decreased by 33%. Improved efficiency also led to a smaller gross win percentage from promotions. Promotions’ percentage for gross win, for reference, was 32.5% in Q2, as opposed to 38.2% in the prior-year period.

In Canada, on the other hand, the total net win reached a record AUD $10.5 million ($6.9 million), representing a stellar 109% increase. Meanwhile, net win from sports betting in the country increased by 94% year-on-year, while net win from iGaming increased by 119% year-on-year.

Sports betting gross win margin expanded, underpinned by a high mix of parlays, according to the company. In addition, the company’s marketing expenses declined by 12%.

Overall, PointsBet recorded a total sports betting turnover of AUD 976.4 million ($642.4 million), which represents a 4% increase. This resulted in a gross win of AUD 94.4 million ($62.1 million), a 3% year-on-year increase. Sports betting net win, on the other hand, was 6% higher at AUD 63.5 million.

iGaming, on the other hand, posted a total net win of AUD 6.4 million ($4.21 million). While this figure is yet to catch up to PointsBet’s sports betting results, it represents a 119% year-on-year growth, attesting to the vertical’s potential.

PointsBet’s total net win for the quarter was AUD 69.9 million ($46 million), representing an 11% increase.

PointsBet Expects Normalized EBITDA

In Q2, PointsBet transferred its US business to Fanatics Betting and Gaming. The move is a part of the former company’s ongoing strategy to streamline its business and focus on stable and lucrative markets.

As a result of the remarkable Q2 results and the divestment of the US business, PointsBet expects total operating cash flows for H2 FY24 to be positive.

Speaking of PointsBet’s guidance, the company expects FY24 total net win to be 10%-20% higher than FY 23. Operating expenses should not exceed AUD 60-70 million.

The company also expects its EBITDA to normalize from April 2024. The group hopes to deliver positive EBITDA next year.