PointsBet Q3 Financial Report Reveals Substantial Growth in iGaming and Sportsbetting
PointsBet, a major player in the iGaming and sportsbetting industry, has recently released its financial report for Q3, showcasing impressive growth and expansion. The company’s success in North America, as well as its continued efforts in the Australian market, paint a promising picture for the future of the business.
Key highlights from the report include a 39% increase in the Total Group Net Win for Q3, reaching $106.6 million. Furthermore, the rolling 12-month Group Net Win to 31 March 2023 is $374.6 million, indicating a strong performance over the past year. PointsBet has also amassed 555,125 Global Cash Active Clients for the 12 months leading up to 31 March 2023.
North America has been a significant growth driver for PointsBet, with a Net Win increase of 128% compared to the prior corresponding period (PCP). This growth can be attributed to the company’s expansion into new markets, such as the Ohio launch on 1 January 2023. This move brings PointsBet live in 14 US states, serving 35% of the US adult population.
The Australian market, however, experienced a slight dip, with the Australian Net Win down 3% on the PCP at $50.7 million. Despite this decrease, growth in the Australian Net Win contribution from mass market clients has increased by 15% for this segment compared to the PCP. This growth leads to improved long-term sustainability for the company.
PointsBet has also taken steps to streamline its operations, with a cost and efficiency review of its North American workforce resulting in a 12% headcount reduction. This reduction is expected to result in annualized cost savings of approximately $6 million.
The financial report also reveals that iGaming represents 28% of the North American Net Win. Live betting in the US accounted for 59% of the total Q3 US turnover/handle, in line with the PCP and well above the market average. These figures showcase the company’s strong position in the iGaming and sportsbetting sectors.
Looking ahead, PointsBet expects its H2 FY23 Normalized Group EBITDA loss to be between $(77.0)m and $(82.0)m. Additionally, the company anticipates a net cash outflow for H2 FY23, excluding movement in player cash, to be approximately 30% lower than H1 FY23.
Overall, PointsBet’s Q3 financial report highlights the company’s robust growth in the iGaming and sportsbetting industries. With ongoing expansion in North America and continued efforts in the Australian market, PointsBet is well-positioned for further success in the coming months and years.
PointsBet Managing Director and CEO Sam Swanell said: “Strong Momentum continues in our North American business and the Australian business is outperforming the market in an industry facing headwinds. Group Net Win growth was a company record this quarter and continues to perform well vs PCPs, and together with our continued focus on reducing costs, improves the global business performance.
“Our North American business continues to grow. In January we went live in Ohio, our 14th US state, which now sees us serving 35% of the US adult population,” Mr Swanell said.