PointsBet — the Australian-based legal sports betting and iGaming provider — announced solid fiscal year (FY) 2023 results, leading the company to project that it'll break even EBITDA as early as April 2024.
In the past fiscal year, PointsBet improved its net win by 26%, while overall revenue increased by 7.6% when compared to FY 2022. The consolidated group loss, however, widened by 3.2% to AU$276,313.
Last year’s consolidated financial results are less significant than in years past. That’s because PointsBet is about to sell off a large chunk of its existing business.
Shedding costly US firm
Last month, PointsBet shareholders approved the sale of the company’s US assets to Fanatics for US$225 million. As a result, PointsBet will be a more streamlined version of itself going forward.
In their letter to shareholders, Chairman Brett Paton and CEO Sam Swanell noted, “The need for capital to fund the US business, which is a highly competitive and disparately regulated market, will stop.”
While the US business showed improvement over FY2023, it still accounted for over 60 percent of PointsBets’ losses.
PointsBet to “double down” on Australia and Canada
Going forward, PointsBet will focus on its Australian operations and possible expansion in Canada. Currently, Ontario is the only Canadian province that allows multiple private-sector providers of legal sports betting and online betting sites. However, Alberta’s recently reelected United Conservative Party is likely to expand legalized sports betting in the province.
Paton and Sanell further stated, “We believe the early stage of the Canadian Business compliments our more mature Australian business, as well as providing an opportunity to leverage attractive features of our tech stack that aren’t available in the Australian market such as iGaming, and online live betting.”
After the Fanatics transaction, PointsBet will continue to own its current sports wagering and iGaming technology platform, while retaining a perpetual license to use and develop the Banach technology assets at no cost. Banach Oddsfactory drives PointsBets’ in-play and same-game parlay products and the cash-out features used in all its markets.
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