The company has terminated talks to sell its Australian business to the News Corp-backed gaming venture behind the Betr brand. However, PointsBet remains in discussion with other interested third parties for acquiring the business. The company continues to engage in strategic transactions that aim to add value for shareholders.
In the three-month period ending on March 31, the business recorded a gross gaming revenue of AU$106.6m, showing a significant increase of 39% compared to the previous year. While the Australian arm of the business experienced a slight decline in year-on-year revenue, the North American operations witnessed tremendous growth with a 103% increase in revenue. PointsBet’s Canadian business also experienced rapid growth during the period.
Despite the revenue growth, the company is expecting an EBITDA loss of between $77.0m and $82.0m for H2 FY3. To drive the business towards profitability, PointsBet recently completed a review of its North American operational workforce resulting in a 12% reduction of headcount, leading to annualized cost savings of approximately $6m.
During the quarter, PointsBet managed to cut its cost of sales by 10.5%. Although sales and marketing costs and staff costs increased modestly, overall costs decreased. The company had $251.7m cash on hand as of March 31, 2023.
