PointsBet reports strong Q4 financials amid US asset sale

PointsBet, the Australian sports betting company that offers sports wagering products in Canada, the United States, and its home turf in Australia, has posted the financial results for the Q4 2023, covering the three months ended on June 30.

The results reflect the performance during the financial year for the company, which does not have to coincide with the final quarter of the astronomical year. During the period, PointsBet reported a net win of AU$102.3m, which was a 19.2% net gain for the company on an annual basis.

Surprisingly, AU$41.2m came from the group’s operations in the United States, which PointsBet is now leaving as part of a $225m deal with Fanatics. The remainder of the net win was generated through the company’s operations in Australia and Canada, which divvied up AU$55.6m and AU$5.6m, respectively. Overall, this was a small gain for the company in these regions, around 0.7% on an annual basis.

The company also shared results for its full financial year, which saw PointsBet’s total net win arrive at AU$391.1m, or an increase of 26.4% on an annual basis. In terms of revenue, AU$161.1m was derived from the company’s US operations, which was a 71.6% increase. The company feels confident in the future of its existing operations and particularly - technology

An example was given with the recent sale of Angstrom Sports to Entain earlier this month, which, according to the company, is a great way to demonstrate to shareholders the value of the group’s own tech value, and its OddsFactory product, which could have similar askance price.

Even though PointsBet has chosen to trim seemingly important and profitable assets, the company is confident that it would be able to drive important results, such as breakeven in terms of EBITDA, and still have a hefty portfolio to wield and utilize.

In terms of technology, PointsBet offers pre-game and in-play sports, racing, and a strong track record in highly-regulated markets. It also runs an iGaming platform supported by the likes of Light & Wonder, Evolution and IGT, the company said in its financial report.

PointsBet similarly shared its outlook for the remaining operations in Australia and Canada for the Financial Year 2024. The headcount will be significantly reduced once the PointsBet sale completes, with the headcount in PointsBet dropping to 275 from its current 650 full-time employees, the company said.

The sale of PointsBet would lead to significant "cost reduction" which should allow the company to strengthen its operations elsewhere and further capitalize on its existing portfolio.

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