Australian PointsBet’s Release Q4 Financials

Australian sports betting firm PointsBet, PointsBet USA’s parent company, released its financials for Q4 2020, showing a forward turnover of 57.9 percent at $349.4 m compared to the same time in 2019.

Growth was guided mainly by its Australian company (+80.5 percent to $302.9 million), which offset a US turnover decrease of 12.9 percent to $46.5 million. The revenue for the year was almost $1.2 billion, more than double the 2019 figure. Australia contributed $830.5 million to that amount, with the remaining $321.1 million coming from US company at PointsBet.

The period’s net win margin was 7.1 percent, contributing to a net year profit of $82.1 m. The figure marked an improvement of 190.9 percent on the net win of 2019. The company announced that it had $135.4 m of corporate cash and no borrowings at year-end.

Although the US market was impacted by the suspension of US sports leagues, PointsBet US retained consumers interested in lower-tier sports, generating a $1.2 m quarterly net profit performance resulting in a $7 m net year-to-date profit.

The company told investors: “The suspension of the key global sports since 12 March had an impact on client acquisition and client activity overall in both the US and Australia. With the NRL and AFL seasons re-launching in the months of May and June respectively, PointsBet has seen client acquisition activity normalize towards pre-COVID expectations.

“In the US, due to the lack of premium sporting content for clients to bet on, and the intentional reduction of marketing spend in Q4, the company expected to experience a fall in activity and client acquisition.”

PointsBet reported that the company had 111,361 active customers for the 12 months to 30 June 2020, representing those customers who put a bet during that 12-month period. “Active clients have increased by 9,206 (being 9%) in H2 FY20 compared to an increase of 34,145 (being 74%) in H2 FY19, and this is a direct result of the suspension of sports in Q3 and Q4 and the reduced marketing spend in the US,” it confirmed.

As a result of the postponement of main US sporting leagues for the majority of Q4 FY2020, PointsBet US posted a $1.2 m Net Win at a 2.5 percent Net Win Margin. That resulted in a $7 m net year-to-date win for the US company.

The firm implemented a customer engagement and activation plan during this period and, as previously reported, the US marketing budget was substantially reduced from pre-COVID expectations.

It added: ” “Following the suspension of the major sports leagues, the US market pleasingly saw a number of new sports and competitions approved for wagering by US regulators, some of which were driven by submissions from PointsBet, including darts, eNASCAR iRacing, Belarusian ice hockey, and various global soccer, basketball, tennis and table tennis competitions.

Table Tennis proved most popular, with over 100 events daily being able to be bet on pre-match and in-play and as a result, table tennis represented the highest handle per sport in April  and May. A number of Central American Soccer competitions were also approved and saw strong activity.”

As a result of this continuing consumer interaction and amid COVID-19 ‘s impacts, the company told investors it’s well placed to execute on restarting the major sporting leagues around the US.

Looking forward, the firm advised that it would restart its targeted US marketing campaign as big U.S. sports returns and subsequently expect a return to negative quarterly net operating cash flows in the coming quarters.