PointsBet announced this week a 24.5% year-to-year increase in net win during the third quarter.
The Australia-based gaming company’s profits were spurred by a 52.7% increase from the Canadian iGaming sector and a 22.3% rise in international sports betting net revenue.
The overall Q3 revenue reached $45.9 million (Australian $70.6 million) while the cost of sales and sales and marketing dropped from the same quarter in 2023. Australia and Canada combined to record a third-quarter sports betting handle of $439.8 million, up 7.2%, while gross revenue reached $54.2 million, a 12.2% year-over-year jump.
Australia’s sports betting net revenue grew 19.9%.
“Sports betting and iGaming remain a fast-growing global market,” PointsBet CEO Sam Swanell said during Wednesday’s conference call. “And companies like PointsBet with the international capabilities, technical excellence, and ability to work in highly regulated markets are valuable in this industry. This means we can leverage what we have built to deliver shareholder value now and into the future.”
Heavy returns
PointsBet sold its U.S. holdings to Fanatics Betting and Gaming in June 2023, and the Australian company announced second capital returns of $82.6 million to shareholders for a total of $287.7 million when combined with the first capital return. The second will be paid on May 16.
“We are thrilled to report that the company reported a net cash flow normalized for U.S. business sale-related items of positive $2 million for the quarter, another first and important milestone in the company’s history,” Swanell said. “We reconfirm again our full-year normalized EBITDA loss guidance of between $9 million and $14 million, currently tracking towards the $9 million end of that range. This is a very strong result given the significant complexity the company has managed during the 9 months of the U.S. business sale and transition process.”
Canadian growth
PointsBet’s move to leave the U.S. came with the ability to hold onto platform technology that will continue to garner profits. Growing the Canadian market gives the gaming company even more presence in North America.
Behind the NFL playoffs, Super Bowl, and the bulk of the NBA and NHL seasons, Canada’s sports betting revenue of $2.3 million increased 79.1% in Q3, thanks in part to improved trading margins and promotional efficiencies.
The handle of $46 million in Canada was up 35% while cash-active accounts rose 12%.
Canada’s iGaming contributed $3.5 million to PointsBet’s third-quarter profits.
“Our Canadian business will continue to grow on the back of our outstanding Odds Factory-driven live sports betting capability,” Swanell said. “The enhanced experience we are now delivering for online casino will complement our sports strength and further enhance revenue growth and path to profitability.”
