PointsBet has posted its Q4 and FY23 results, presenting net win of AU$391m (US$260.1m) for the full year overall, up 26% year-on-year.
PointsBet recently sold its US operations to Fanatics for US$225m in a bidding war against DraftKings and the report reflects a strong growth of its US operations.
Total net win reported from US operations in FY23 was AU$161.1m, up 72% from FY22. As reflected in the graph below, both sports betting net win, iGaming net win and total net win all increased. Sports betting net win went up 58% in FY23, iGaming net win increased by 122% and the total net win went up by 72% year on year.
The graph reflects an increase overall in the US operations in FY23.
Its Canadian operations displayed a gigantic percentage growth of 10,415% during FY23; however, this was due to its Canadian operations being very new and, therefore any income the company would have generated would have been a huge jump. Q4 2022 showed that Canadian operations had only made AU$0.2m, though Q4 2023 generated AU$5.5m.
As expected, the Australian operations dominated the quarterly results. The Australian operations garnered total net win of AU$211.7m in FY2023 and generated net win of $55.6m in Q4 FY23, a 1% increase on Q4 FY22, showing a plateau in growth.
Highlights of the report.
Net cash flow is in the negative but has shown to have improved from Q3 FY23, increasing from minus AU$88.7m to minus AU$60.2m in Q4 FY23.
However, corporate cash flow decreased. Q3 FY23 showed that corporate cash flow was at AU$251.7m; it decreased to AU$194.6m in Q4 FY23. This decrease in cash flow could be a factor in the acquisition of its US operations, but it will inevitably rise once it has sold the business.
The share price for PointsBet is currently AU$1.69, which is almost half of what it was last year. Last year's share price in July 2022 was AU$3.58.
Despite not showing its current EBITDA for this quarter, the report also states that, “as a result of the US business sale, the company expects EBITDA to be at or close to breakeven from April 2024.”
