PointsBet’s chief executive Sam Swanell outlines a technology-focused approach to drive growth in Australia, Canada and the UK following the departure of the US group.
Swanell informed investors that PointsBet is on track to achieve break-even this year, and grow in the fiscal 25. He reiterated his reasoning for selling its US operations to Fanatics in a $225.0m deal. The CEO also updated the audience on its growth plans in remaining Australian and Canadian market.
Swanell stated that the technology used by Fanatics and its platforms will play a key role in its future performance. During the last financial year, PointsBet handled wagers totaling more than $7 billion.
PointsBet retains all rights to the Banach Oddsfactory technology and the right to further develop it. It is used to drive in-play products, parlay features and cash-out options in Australia, Canada, and the US.
Swanell stated that the sale of Fanatics’ platform validated the strength of Swanell’s technology. We have granted Fanatics a perpetual license to use our platform technology, but we still retain ownership. This means that we are able to develop it and use it as best possible for PointsBet’s shareholders.
I think it’s important that shareholders understand how valuable technology is. This has been a critical feature of our business and bodes well for its value and future in Australia and Canada.”
Swanell continued: “Our technology organization isn’t just agile, it is a powerful and reliable machine capable of handling both horizontal and vertical scale needs, which makes our app extremely user-friendly. Our technology is what we believe will drive our growth in the coming year, and even beyond.
PointsBet on track to deliver targets
Swanell stated that PointsBet is on schedule to meet its FY24 forecast after the first five month.
The revenue from the continuing operation in Australia and Canada has grown from 26m dollars in FY19, to between $230m and $250m dollars in FY24.
It would represent a 10%-20% increase on the FY23. PointsBet expects that the company’s ongoing operations will be EBITDA-positive in FY25 and run at breakeven monthly around April 2024.
He said: “We can achieve strong, profitable growth and we do not expect to need external financing in order to accomplish this.”
The turnover at PointsBet dropped 3.4%, to $611m in its first quarter of 2024 ending on 30 September. The company’s Canadian revenue grew 111.4%, to $44.2m. The company’s Australian revenue, on the other hand, dropped 7.3%, to $566.9m.
PointsBet’s Net Win from Sports Betting Continuing Operations grew by 14.7%, to $55.1m. The net win for igaming increased by 130.7%, to $3.0m. The net profit from ongoing operations increased by 18.0% to $58.2m.
