Pointsbet shares dip on $178 million loss

Finance News

PointsBet has reported a net loss of $178 million in the latest half, despite nearly doubling its US revenue. The result comes amid growing speculation about new-kid-on-the-block Betr taking over its Australian arm.

The bookie widened its statutory loss before interest, tax, depreciation and amortisation – the metric closely watched by investors to $163 million over the six months to December, up 25 per cent on the first half of financial year 2022.

These results show our North American strategy is delivering – revenue growth is up and costs are going down, and the Australian business is continuing to deliver. To put it simply the jaws at PointsBet are positive. Revenue is growing strongly, and costs are reducing. We held $320.7 million in corporate cash as at 31 December 2022 and we have no corporate debt.

The US business saw total Net Win increase by 81% to $70.1 million, with 17% less marketing expense and strong iGaming performance. iGaming also represented 31% of total North American Net Win. In the United States – the largest and fastest growing online betting market in the world, we are the 7th largest online operator, out of a field of over 60 licensed online operators. On top of that, our app which is powered by our proprietary tech stack is independently ranked as top three in the US market.

This has not gone unnoticed. The third-party strategic interest shown in our company demonstrates we have built a very valuable business. This gives us significant optionality around how we take the business forward to maximise value for our shareholders