In its unedited 2024 results on 31 July, PointsBet CEO Sam Swanell told analysts the US business disposal had left the group with significant cash reserves of $28.1m to “invest in further growth”.
Swanell highlighted record quarterly cash flow performance of $7.1m in Q4. He said the company remained “well capitalised to invest in further growth and execute ongoing operational and strategic plans”.
“We continue to invest to further growth, in particular, in our core technology and product capabilities and through our strategic marketing investment. This is driving our market share growth in Australia and Canada and setting the company up for further success,” he said.
PointsBet received its final installment of US$50m from fanatics in Q4.
It closed the financial year with a gross profit margin of 50% and a lower-than-expected EBITDA loss of $1.8m, 55% lower than the originally forecasted $4m to $6m range.
Canada powers group betting growth
The group’s core sports betting business saw net win increase by 13.6% year-on-year to $248.3m. Profit margin for the vertical also increased from 7.7% to 8.5% in FY24.
Quarterly growth for betting was also strong with net win up 12% for the April-June 2024 period.
Growth in Canada was prominent, as betting win in the market was up 124% to $15.2m for the full-year, while turnover was also up 31% to $255m. Swanell told analysts the firm was gaining market share in both Canada and Australia.
As for igaming in Canada, PointsBet posted a net win of $18.8m, up 63.5% from the previous year. Igaming is currently only operated via its Canadian product, while sports betting spans both Australia and Canada.
Swanell said PointsBet’s business grew faster than the overall Canadian market in 2024. “But Canada remains an earlier stage market with more strong growth potential,” he said.
Australia remains the firm’s core market by some margin, reporting $233.1m in net win from sports betting, up 10.1%. Betting turnover was 1.7% higher at $2.68bn, with net win margin rising from 8% to 8.7%.
Cash active betting clients were up 4% in Q4, Swanell said, noting its in-house betting product and a strong focus on retention and reactivation powered this growth.
Cutting back on advertising to minimise harm
Marketing spend was decreased by 21% as the firm cut back on advertising across TV and in-stadium to reduce the risk of exposure to its gambling brands across its advertising.
The firm no longer displays its ads on free to air television between the hours of 6pm and 9.30pm and has removed its brand from stadiums and sports team’s jerseys, meaning its sponsorship deals with the Manly Sea Eagles and Cronulla Sharks have been waived from 2025.
Original article: https://igamingbusiness.com/finance/full-year-results/pointsbet-net-win-growth-ebitda-exceeds-expectations-fy24/
