Sports betting operator PointsBet has released its financial results for the fiscal year 2023, reporting a turnover of AUD5.74 billion ($3.81 billion), up by 14.6% compared to the prior year. The increase was boosted by the sale of its US arm to Fanatics in the final quarter.
For the period ended June 30, the company also reported record revenue of AUD391.1 million ($260.29 million), up 26.4% year-on-year. Of the total, AUD161.1 million came from the US and AUD230 million came from the US and Canada.
Spots betting remained the company’s most profitable vertical, contributing AUD335.8 million ($223.48 million) of the total net win across all regions, while iGaming reported AUD55.3 million ($36.8 million).
Turning to Q4, the total turnover was AUD1.06 billion, down by 17.9%. This was split fairly evenly, with AUD524.4 million coming from the US and $544.8 million coming from Australia and Canada. Meanwhile, net win totaled AUD102.3 million for the period. Of this figure, AUD61.1 million was derived from Australia and Canada and AU$41.2 million from the US.
The cost of sales for Q4 saw a 2.2% increase to AUD56.7 million ($37.74 million). This offset the 47.6% decrease in quarter-on-quarter marketing costs, which reached AUD36.1 million ($24.03 million).
Staff costs dropped 3.7% to AUD25.8 million (17.17 million), contrasting with the 26.4% rise in administration, corporate costs, and goods and services tax, totaling AUD24.9 million ($16.57 million).
Despite the US division’s profitability, the Australian company doesn’t have the resources to focus on every regional division and would be unable to reach its full potential in the market. The Fanatics sale significantly streamlines operations and allows PointsBet to invest the extra capital in its core markets, ensuring long-term profitability.
PointsBet would still maintain a presence in North America, even after the proposed sale. The agreement ensures that PointsBet will keep its Canadian and Australian businesses intact. Furthermore, PointsBet will retain full ownership of its exclusive sports wagering and iGaming platform, which is currently utilized in both the Australian and North American markets.
Original article: https://www.yogonet.com/international/news/2023/07/31/68114-pointsbet-reports-record-revenue-of-2602m-during-fy2023-driven-by-fanatics-sale
