PointsBet Issues Financial Health Report, Shows Revenue Improvement

PointsBet Issues Financial Health Report, Shows Revenue Improvement

Australia-based sports betting operator wants to have a place on the global stage, and its entrance into the US market is going to help. The company has provided an update to its financial health, reporting its revenue for the first half of its current fiscal year. Despite a few bumps, it’s on track, but will need to tighten the reigns in order to gain strength.

PointsBet Continues Growth

PointsBet’s report covers the last six months of 2021, corresponding to the first six months of its fiscal year. During that time, its net revenue increased by 27% over the same period in the previous year, totaling $97.6 million. The group’s net win growth was 77% from the $146.7 million reported.

In Australia, the number of “cash active clients” improved by 63% to 232,875. In the US, the segment saw a 210% jump to 211,113. As a result, the net win for Australian operations was $107.9 million, 27% higher than a year earlier. For the US, the sports betting net win was $31.3 million, a significant improvement over the $2-million loss in the previous period.

Given that PointsBet only controlled about 4.2% of the market during that time, there’s substantial room for improvement. iGaming operations boosted the final figure, with a net win of $7.6 million for the company.

While all of those numbers look impressive, PointsBet needs to work on fine-tuning some of its operations. It has had to spend a lot to continue its expansion plans, but still reported an EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $130.6 million. A year earlier, it also reported an EBITDA loss. It’s headed in the wrong direction, too, as that loss was $71.3 million.

Better Days Ahead

PointsBet reached several milestones during the second half of its growth story, highlighted by partnerships with the NFL and MLS. It has been specifically selected by the NFL to be an Approved Sportsbook operator, beginning with the 2021 season. Additionally, it has been Austin FC’s exclusive sportsbook partner since September last year.

PointsBet was also the new major partner for the Manly Sea Eagles NRL Team in Australia last year. PointsBet will now be the primary sponsor of the Sea Eagles NRL jerseys, with an exclusive multi-year deal, the company states.

The company’s technology platforms seem to be attracting customer interest. According to the financial update, app downloads grew 121% in the second quarter of the fiscal year compared to the same quarter in the prior year. This was due to its “improved product offering, user experience and brand equity.”