PointsBet Holdings reduced its net loss by 79.6% to AU$36.4m (PS18.8m/EUR22.1m/US$23.9m) in the first half of its 2024 financial year following the divesture of its US business.
Fanatics Betting and Gaming acquired PointsBet US for $225.0m in August 2023. FBG has begun to phase out its PointsBet brands across the US, and Iowa became the latest state last week.
PointsBet is still active in several US states. FBG completed its online rebranding in 12 US states. Retail betting outlets are also active in Pennsylvania and West Virginia.
PointsBet has lost its access to a growing market in the US, but it can now focus on other activities. PointsBet is still active in Canada and Australia, where it was founded.
Canada and Australia record H1 revenue
The statutory revenues from ongoing operations for the period ending 31 December 2023 were AU$117.9m. The previous year’s $95.3m was up 6.7%.
PointsBet stated that the growth was partially driven by an outstanding performance in Australia. The revenue in Australia grew 6.7%, to $101.7m. This was due to strong betting activity on its main sports bets, including NBA, NFL, and football. The growth was achieved despite the fact that turnover fell by 4.1% in the country.
The H1 was also the first time that Australia had a positive EBITDA for PointsBet. EBITDA for H1 was $900,000. This compares to the $20.2m losses in previous years.
Canada saw a 137.3% increase in revenue year on year to reach $15.9m. The $9.5m total revenue from igaming, which was up by 126.2% and the $6.3m revenue in sports betting, which was up by 152.0%, were included. The growth in sports betting was aided by an increase in turnover of 17.4%, while for igaming the partnership with Strive Gaming improved PointsBet’s position in Canada.
PointsBet noted that the Canadian company is also on course to break even EBITDA in the year 2025. EBITDA losses in H1 were reduced from 19.4m $ to 12.0m $.
PointsBet’s net loss shrinks due to revenue growth
Total operating costs were down by 29.2% in H1 to $72.1m. The main area of expenditure, sales and marketing, saw a 30.2% reduction in spending.
Net finance costs were $12.1m. This left a loss before tax of $32.7m compared with $53.6m for H1 2023. PointsBet didn’t pay any tax, but it did have a $3.7m loss on discounted operations from the US and Europe. This loss was $124.6m in the prior year.
The net loss in H1 has been reduced to $36.4m from $178.2m. EBITDA losses were also reduced from $49.9m down to $20m.
Lucas joins PointsBet as the new Technology Chief
PointsBet also appointed Daniel Lucas to the position of group chief technology officers. The new chief technology officer will be joining the company on September 1 and replacing Jerry Bowskill who has decided to step down after the FBG acquisition in August 2023.
Lucas has been the global director of Trading Technology at Flutter since almost two years. He worked at SportsBet in different roles for 9 years.
Sam Swanell, CEO of PointsBet Group said: “We’re very happy that someone with Dan’s experience and quality joins us.”
Dan’s knowledge of trading and complex platforms, including algorithmic trading and risk, along with his people management skills are assets for PointsBet Australia and Canada, where we invest heavily in the market-leading multi and live betting capabilities through Odds Factory.
Swanell paid tribute as well to Bowskill. He stated: “Jerry made an outstanding contribution during his time as the leader of our global technology organization at PointsBet. His experience has proved invaluable in planning and executing the transfer of our US operations to Fanatics.
I would like to express my gratitude for everything Jerry has done at PointsBet, and wish him the very best for his future endeavors.
