Turnover for the three months ended 30 September increased by 193.4% year-on-year to $691.9m (£378.9m/€417.6m/$493.3m), with $527.7m coming from Australia, representing a 221.0% growth. US stakes contributed $164.2m, showing a 130.0% improvement from the first quarter of FY2020.
During this period, PointsBet capitalized on structural changes in Australia’s market, such as the merger of BetEasy and SportsBet following Flutter’s acquisition of The Stars Group, as well as customers shifting online. These factors led to a 73.2% increase in customer numbers in Australia, reaching 124,715, and a 158.9% growth in the US customer base, reaching 39,816.
In the US, PointsBet expanded its operations by relaunching its offering in Indiana, going live in Illinois, and establishing a presence in national media through its partnership with NBC Sports.
After accounting for player winnings, gross revenue reached $70.4m, marking a substantial 282.6% rise from the previous year. Australia contributed $60.5m to this figure, while the US contributed $9.8m.
Once revenue-related costs were factored in, including losses from high levels of investment in customer acquisition in Illinois and Indiana, net revenue for the quarter amounted to $38.1m, up 222.9% year-on-year. Australia accounted for the majority of net revenue at $35.1m, with the US swing from a $0.8m loss in Q1 2020 to $3.1m.
In terms of expenses, PointsBet’s cost of sales, which includes product manufacturing and operating costs, increased to $19.0m. Additionally, advertising and marketing spending jumped by 261.7% to $28.6m. Personnel and administrative costs experienced minor declines during the quarter.
As a result of an $11.6m increase in amounts held in player accounts, PointsBet’s net expenditure on operating activities amounted to $10.0m.
The operator’s capital expenditure for the quarter stood at $15.3m. Following a capital raise of $353.1m, net cash for financing activities reached $342.1m as of 30 September. PointsBet concluded the quarter with cash and cash equivalents amounting to $457.1m, compared to reserves of $144.3m at the beginning of the reporting period, with no corporate borrowings. This financial position ensures that the necessary funds are available to achieve PointsBet’s strategic objectives and planned activities.
