PointsBet reported revenue at AU$178.1m, or PS989,877/EUR1.1m, in its half-year results, which ended 31 December 2022. This was up 28% yearly but losses grew to AU$178.2m.
Year-on-year, the net loss increased by 21.7%. The six-month-period saw a large portion of the cost go to PointsBet America operations. These operations were also a significant part of the company’s revenue results. They accounted for AUS$75.0m. This was 86.1% more than H1 2022.
PointsBet launched their sports betting product in Kansas in September 2022. It was followed by Louisiana in October 2022. Maryland followed in November, when the state’s market officially opened.
PointsBet had launched mobile betting in 14 states and retail wagering in three of them. The online casino was available in four.
PointsBet has now opened its fourth retail location in Illinois . It launched the new retail casino in January.
PointsBet’s managing director Sam Swanell said that the operator performed well in the US over the same period.
He stated, “These results prove that our North American strategy works – revenue growth has increased and costs have fallen.” “In the United States we are the 7th largest online gambling operator out of more than 60 licensed operators. It is the fastest-growing online betting market.
He also praised Australian operator’s results, despite the fact that revenue fell slightly from AU$97.6m to AU$95.3m in the half-year 2022.
PointsBet began discussions last month to sell its Australian business, which was headed by News Corp. NTD Limited manages the Betr brand in Australia.
Betr was created by Jake Paul, an influencer, and Joe Levy (a Simplebet cofounder) was launched in August 2022.
He said, “The Australian business continues to deliver,” he added. “Australia’s total turnover was AU$1.55bn up 14% over the previous corresponding period (PCP), and net win was AU$105.3m down 2% from the PCP.”
Broken down by region
PointsBet’s Canadian operations generated AU$6.7m revenue, which was the highest amount ever recorded. The Canadian sports betting market opened in April 2022. Technology was responsible for the remainder of AU$1.1m in revenues, a decrease of 9.0% annually.
The total handle for the period was AU$3.2bn. This is an increase of 39.8% year on year. The US contributed the most at AU$1.57bn, a substantial increase of 66.0% annually.
The handle from Australia was AU$1.55bn and has increased by 14.1%. Canada’s handle was AU$101.3m.
The total sports betting net win was AU$158.2m. This is an increase of 13.6%. The net sports betting win in Australia remained stable by region, with a 2.4% decrease.
This was slightly less dramatic in the US where sports betting net wins grew by 62.0%.
PointsBet H1 results
Net profit was AU$69.8m due to the total cost of sales of AU$108.2m. This net profit was 27.6% more than the H1.
This is partially offset by the income from other sources, which amounts to AU$3.7m. These include net foreign exchange gains at AU$3.6m and research & development income at AU$115,000.
Marketing costs were at AU$131.3 million, which was the highest for the period. The next highest were employee benefits expenses at AU$74.9m, and depreciation & amortisation costs of AU$22.5m.
The remainder of AU$26.8m was a result of a range other costs, such as consulting expenses and administrative expenses.
The expenses for the six-month period were AU$255.6m – AU$57.3m more year-on-year.
After finance income of AU$4.6m was followed by finance expenses of AU$2.1m. The loss before income tax was AU$179.6m.
The total loss was AU$178.1m after taking into account the income tax benefit of AU$1.4m.
