PointsBet upgraded its EBITDA full-year guidance, after predicting a smaller Loss for FY24.
PointsBet’s normalised EBITDA loss for FY24 is now expected to be between AU$4m (PS2.1m/EUR2.4m/US$2.6m) and $6m. The normalised EBITDA was previously estimated to be between $9m-$14m. The normalised EBITDA was $49.m in FY23 for the continuing operations.
PointsBet attributes this to the ongoing and improved trading year-to date in the second half the year. The company also emphasized its increased productivity and operations.
Sam Swanell is the managing director and chief executive officer of PointsBet. He said that the outlook for the company was particularly positive due to the recent sale of the US operations of PointsBet in August of last year.
Swanell said that the upgrade in guidance today was due to the continued success of trading and improved productivity.
It is noteworthy that the company was able to achieve such remarkable results while simultaneously undergoing a complicated technical and operation migration, separation, and reorganisation. The recent sale of its US business has completed this process.
Fanatics Betting and Gaming acquired PointsBet US in the end for $225.0m. DraftKings’ proposals were rejected.
FBG originally agreed to purchase PointsBet US in June 2023 for $150.0m. However, DraftKings made an offer of $195.0m. PointsBet stated that it will engage DraftKings to discuss the “superior” proposal.
Continued growth
Swanell said that PointsBet focuses on its core technologies and products.
He continued, “We will continue to make investments for growth in the future. We are focusing on our core technologies and capabilities as well as our massive marketing budget.” This is driving market share growth, and setting up the company for future success.
PointsBet has seen a positive effect on its operations since the sale of PointsBet US. The sale of PointsBet US was described as the main driver behind PointsBet’s first-half results. The net loss for H1 was down 79.6%, to $36.4m. The statutory revenue in the first half was $117.9m. This is an increase of 6.7% compared to H1 2023.
PointsBet’s first-half EBITDA was positive at $900,000. The loss of $20.2m was significantly reduced.
FBG slowly took over states where PointsBet had already been active. The launch of New Jersey in the first week of this month completed the process. With the launch, the Fanatics Sportsbook will now be available for 95% of US online markets.
Sportsbooks were already available in Arizona Colorado Connecticut Illinois Indiana Iowa Kansas Kentucky Maryland Massachusetts Michigan New York North Carolina Ohio Pennsylvania Tennessee Vermont Virginia West Virginia West Virginia
