PointsBet closed out its 2024 full year with a $267.1m net profit and $28.1m cash reserve, after selling its US business to Fanatics for US$225m.
Sam Swanell, CEO of PointsBet and its unabridged results for 2024 on the 31st July told analysts that the US Business Disposition had resulted in a significant cash reserve of $28.1m which the group could “invest” into further growth.
Swanell highlighted the record quarter cash flow of $7.9m for Q4. Swanell said that the company was “well-capitalised” to continue growth, and implement ongoing strategic and operational plans.
We continue to make strategic investments in marketing and technology to drive growth. “This is driving market share growth for the company in Australia and Canada, and setting it up for future success,” said he.
PointsBet has received the final payment of US$50 million from fans in Q4.
The company ended the year with an EBITDA loss that was 55% less than expected, at $1.8m. This is a reduction of $55 million from the original forecast of $4-6m.
Canada powers group betting growth
In the core business of sports betting, net wins increased by 13.6% to $248.3m. The vertical’s profit margin also increased, from 7.7% in FY24 to 8.5%.
The growth in betting for April to June 2024 was strong, with net wins up by 12%.
The growth in Canada is notable, with betting wins in the Canadian market up 124%, to $15,2m, for the entire year, and turnover up 31%, to $255m. Swanell informed analysts that the company was increasing its market share both in Canada and Australia.
PointsBet, which offers igaming services in Canada, posted an impressive net profit of $18,8m. This is up by 63.5% compared to the prior year. Igaming in Canada is only available through its Canadian-based product. Sports betting can be found both in Australia and Canada.
Swanell stated that PointsBet grew faster in 2024 than the Canadian overall market. He said that Canada was still a market in its early stages with greater growth potential.
Australia is still the company’s main market, with a net profit of $233.1m, an increase of 10.1%. The betting turnover increased by 1.7% to $2.68bn. Net win margins rose from 8.7% to 8.7%.
Swanell reported that cash active clients had grown by 4% during Q4. The company attributed this to its own betting product, as well as a focus on reactivation and retention.
Reduce the harm of advertising
The firm reduced its marketing spend by 21%, as it cut its TV advertising and stadium advertising to lower the exposure of its gambling brands in its advertising.
It has also removed its logo from sports teams’ jerseys and stadiums. The sponsorship agreements with Manly Sea Eagles & Cronulla Sharks will be cancelled in 2025.
