Australian sports betting and iGaming operator PointsBet reported a total net win of AU$70.6 million ($46 million) during the third quarter of 2024, up by 24.5%, prompting the company to declare its second capital return to investors.
Growth was driven by a 52.7% year-on-year jump in iGaming net win, which surged to AU$5.5 million ($3.5 million), exclusively driven by PointsBet’s Canadian operations. Concurrently, net win for sports betting reached AU$65.1 million ($42.4 million), marking a 22.3% annual increase.
The announcement of the second capital return, totaling AU$127 million or AU$0.39 per share, coincided with the release of PointsBet’s third-quarter results. This capital return follows a strategic move to return up to AU$458 million to shareholders following the sale of PointsBet’s US business to Fanatics for $225 million in June 2023, after a fierce bidding war with DraftKings.
With this second capital return, shareholders have now received a total of AU$442.37 million. The payment is scheduled for May 16, 2024.
PointsBet’s performance in Australia and Canada notably bolstered its financials in Q3. In Australia, net win increased to AU$60.8 million, with a 19.9% rise, while in Canada, sports betting net win soared to AU$4.3 million, climbing by 79.1%.
The quarter also saw the completion of PointsBet’s integration with Strive Gaming, enhancing its operational efficiency and market presence.
Along with rising revenue, PointsBet managed to decrease its costs during the quarter, with declines in the cost of sales and marketing expenses. This resulted in a net cash inflow from operating activities of AU$5.4 million. The quarter recorded a net cash flow of AU$2 million, marking PointsBet’s first instance of positive net cash flow in its history.
PointsBet reaffirmed its guidance for a normalized group EBITDA loss between AU$9 million and AU$14 million for FY24, while anticipating positive group EBITDA in 2025.
Original article: https://www.yogonet.com/international/noticias/2024/04/25/71908-pointsbet-announces-second-capital-return-following-surge-in-quarterly-net-win
