PointsBet US total net win jumps 23% in fiscal Q3 as sale discussions continue
US and Canadian growth continues as Australian turnover and net win slides 38% and 12%, respectively
PointsBet has reported a 23% quarter-on-quarter (QOQ) increase in its US divisional total net win to A$49.8m during its fiscal Q3 2023 amid “well advanced” discussions over the sale of its US operations.
Releasing its latest financials for the period, PointsBet revealed a 22% QOQ drop in its US sports betting turnover to A$819.2m, offsetting a 34% QOQ increase in its sports betting net win, which rose to A$38m over the same period.
PointsBet also reported a 4% slump in its US igaming net win, which fell to just A$11.8m in fiscal Q3 2023.
The firm launched in Ohio during the period, bringing its total number of operational US states to 14, covering 35% of the US adult population.
However, PointsBet also walked away from a potential sportsbook launch in Massachusetts, discontinuing its license application in the Commonwealth in February, with no reason given by the firm for this move.
PointsBet revealed that igaming now represent 28% of total US net win for the firm, with PointsBet’s live betting operations now accounting for 59% of its total US sports betting turnover/handle during Q3.
Similar to the drop in US turnover, PointsBet’s Canadian division saw its fiscal Q3 2023 turnover drop 37% QOQ to A$50.9m, despite its total net win rising by 21% to A$6.1m.
PointsBet Canada reported 21% QOQ growth in its igaming net win, which rose to A$3.6m in Q3, and a 17% uptick in its Canadian sports betting net win to A$2.4m.
At a wider group level, PointsBet’s group total net win saw QOQ growth of just 3% during fiscal Q3 to A$106.6m, with similar growth of just 3% in sports betting net win (A$91.2m) and a 2% spike in igaming net win, which grew to A$15.4m in the same period.
PointsBet also confirmed it had a total of 555,125 global cash active clients in the 12 months leading to March 31, 2023.
The mixed results in both divisions come amid a turbulent time for the business, with PointsBet last week confirming “well advanced” discussions with multiple parties regarding the whole or partial sale of its North American business.
The Australian Securities Exchange-listed operator also confirmed the completion of a cost and efficiency review of its North American operations, measures which resulted in a 12% reduction in headcount.
This reduction is expected to result in annualized cost savings of approximately A$6m.
Additionally, PointsBet is in discussions with a number of third-party suitors over the sale of its Australian business, following the termination of talks with fellow Australia-facing micro-betting operator Betr earlier this year.
In respect of Australian performance, PointsBet reported a 38% QOQ decline in sports betting turnover to A$579.8m, with total net win sliding 12% over the same period to A$50.7m.
PointsBet overall group CEO Sam Swanell was upbeat in his assessment of the business performance during Q3, citing comparables across its operational markets.
“Strong momentum continues in our North American business and the Australian business is outperforming the market in an industry-facing headwind,” Swanell said.
“It’s clear we have huge momentum in the US. We’re growing PCP revenue, I think it’s like 100%, 80%, 100% the last few quarters. It’s clear that we have one of the best products in the market. We have a great footprint in hard-to-get states. The business is going really, really well.
“Group net win growth was a company record this quarter and continues to perform well versus PCPs, and together with our continued focus on reducing costs, improves the global business performance,” he added.
However, Swanell remained tight-lipped on the potential disposals of both the US business and its Australian counterpart.
“It’s all about shareholder value. We’ve built a valuable business as I’ve said consistently. We’re pleased with our market conditioning. We clearly have a growth plan that we’re delivering on. But at the same time, we’re conscious we operate in a rapidly evolving market,” Swanell said.
“We’ve got a strong balance sheet, but we acknowledge that at some point we’re going to need some additional capital, so we continue to assess all credible strategic opportunities really carefully.
“Ultimately, in determining which of these opportunities would be pursued, we have to answer one key question –which is what would be most value accretive for shareholders,” he concluded.