PointsBet’s normalised EBITDA loss for FY24 is now expected to be between AU$4m (£2.1m/€2.4m/US$2.6m) and $6m. Previously, the normalised EBITDA loss was estimated between $9m and $14m for the year. In FY23, the normalised EBITDA loss was $49m for continuing operations.
PointsBet attributed this to ongoing, improved year-to-date trading in the second half of the year. It also highlighted its improved operations and productivity.
Sam Swanell, managing director and CEO of PointsBet, said the positive outlook was particularly impressive due to the sale of PointsBet’s US business in August last year.
“Today’s guidance upgrade is a result of the company’s continued strong trading performance together with improved efficiency and productivity,” said Swanell.
“It is particularly notable to see that the company has been able to continue to deliver such impressive results, while simultaneously undertaking a complex technical and operational migration, separation and re-organisation, with the recent completion of the sale of the US business.”
Fanatics Betting and Gaming (FBG) ultimately acquired PointsBet US for $225.0m, successfully fending off proposals from DraftKings.
FBG initially agreed to acquire PointsBet US for $150.0m in June 2023 – however, DraftKings then submitted an offer worth $195.0m. PointsBet said that it would engage with DraftKings on the proposal, which it dubbed as “superior”.
Further growth
Swanell added that PointsBet is focusing on investing in its core technology offerings and products.
“We continue to invest for further growth, in particular in our core technology and product capabilities and our outsized marketing investment,” he continued. “This is driving our market share growth and setting the company up for further success in FY25 and beyond.”
The sale of PointsBet US has had an ongoing positive impact on PointsBet’s operations. It was lauded as a driver for success for PointsBet’s H1 results. Over H1, net loss was reduced by 79.6% to $36.4m. Statutory revenue for the first half of the year was $117.9m, an increase of 6.7% from H1 2023.
The first half of the year also represented the first EBITDA-positive half for PointsBet, hitting $900,000. This was a significant improvement from the $20.2m loss year-on-year.
Since the deal, FBG has slowly seized control in states PointsBet was already active in. This was completed with a launch in New Jersey earlier this month. The launch means that the Fanatics Sportsbook is now available to 95% of the US online market.
The sportsbook was already available in Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Vermont, Virginia and West Virginia.
Original article: https://igamingbusiness.com/finance/pointsbet-upgrades-fy24-ebitda-guidance/
