PointsBet Reports Slight Dip In Turnover Post US Assets Sale

The leading betting and iGaming company with a strong presence across Australia and North America, PointsBet, released its Q1 FY24 activities report, sharing insights regarding its performance for the latest trading period. The company released its report Wednesday, revealing that its total sports betting handle halted at AU$611.0 million ($387.5 million) for Q1 FY24. This result, when compared to the corresponding period in FY23, marked a slight 3% decrease.

The latest announcement comes after earlier this year, PointsBet agreed to sell its US assets to Fanatics. Initially, Fanatics proposed $150 million for PointsBet’s US operation, a bid that was later surpassed by an offer from DraftKings that was $195 million. However, in the end, Fanatics acquired PointsBet’s US operations in a deal for $225 million. The latest report is the first one that excludes its US-facing operations.

The recent trading update reveals that sports betting gross win for Q1 FY24 hit AU$75.3 million ($47.6 million), marking an increase of 1% year-over-year. The reported gross win margin percentage for the latest trading period was 12.3%, up by 0.5% points when compared to the gross win margin from Q1 FY23. Overall, sports betting net win increased by 15%, hitting AU$55.1 million ($34.9 million) for Q1 FY24.

The total net win reported by PointsBet for Q1 FY24 was AU$58.2 million ($36.9 million), representing an increase of 18% year-over-year.

Canada Remains a Priority Market for PointsBet

Providing a breakdown of the total net win, PointsBet revealed that its sports betting operations in Australia saw an uptick of 11% to AU$52.8 million ($33.5 million) in net win. In contrast to the positive result, the betting handle in Q1 FY24 for Australia decreased by 7% to AU$566.9 million ($359.5 million).

On the other hand, the company’s betting operations in Canada saw AU$44.2 million ($28 million) in turnover for Q1 FY24, a result that represents an increase of 111%. Net win from sports betting for the region increased by a staggering 440% to AU$2.3 million ($1.5 million). Similarly, iGaming net win in Canada soared by 136% to AU$3 million ($1.9 million). Overall, the total net win for PointsBet’s Canadian operations was up 212% to AU$5.4 million ($3.4 million).

“Well, in general, it’s definitely going better. I mean we’re clearly on a path to profitability. It’s very clear.“

Sam Swanel, CEO at PointsBet

Sam Swanel, PointsBet’s CEO, explained that the latest results underline the growth trajectory of the company. He spoke about PointsBet’s operations in Canada, explaining that the company wants to keep the region profitable. Swanel also praised the Canadian market for its potential, explaining that it is far more attractive than some markets across the United States.