Australian bookmaker PointsBet, the parent firm of PointsBet USA, has published its full-year results for the period ended June 30, 2019. Despite strong revenue growth, the expansion of its new US operation led to an EBITDA loss of AUD$32.7m (€19.2m).
PointsBet said that the fiscal year ended June 30th had been a transformational one for the company, as it gained market access in the US, took its first mobile bets in New Jersey, and completed a successful IPO (initial public offering) in Sydney in June.
The company has reported a 173 per cent increase in revenue to AU$25.6m (€15.6m), in its first set of results as a public company. It was powered mostly by the growth of its core online Australian business, thanks to 254 per cent increase in registered clients to 123,180.
However, a sharp increase in operating expenses, partly attributed to the expansion of its new US operation, led to an EBITDA loss of AUD$32.7m (€53.7m) on a normalized basis and an operating loss of AUD$37.2m (€61.8m) on a statutory basis. Ultimately, the firm reported a normalized loss after tax of AUD$34.4m (€57.1m) and a statutory loss after tax of AUD$41.9m (€69.5m).
Since the January start, the company’s US gross win in the was US$1.54m (€1.39m), whilst its client promotional costs for the period were US$2.06m (€1.86m), thus resulting in negative net revenue of almost €0.5m euro.
However, the firm noted that significant growth period for the company’s operations, as it established its presence in the US market, resulted in heightened costs associated with marketing, staffing and administration. This led to the US segment recording an EBITDA loss of AUD$20m, in line with management expectations.
“PointsBet is on the starting line of the nascent US sports betting opportunity. It is estimated that if all 50 States legalize online sports betting, the market revenue opportunity will be US$17.3bn per annum. Pending favorable legislation, PointsBet already has market access agreements for 10 US states with a combined population of approximately 81 million, with those states representing an estimated sports betting revenue market of US$4.6bn per annum” stated CEO of the company Sam Swanell in his report to investors.
“There is significant market opportunity in the United States as a result of the Professional and Amateur Sports Protection Act being overturned by the Supreme Court in May 2018, and PointsBet has already taken significant steps towards capitalising on this opportunity,” added chairman Brett Paton.Follow us on