Higher Q3 spending sees net loss widen at PointsBet despite revenue growth
Group revenue for the three months to 31 March amounted to $64.9m, up from $18.7m in the same period last year, while the amount wagered by customers was also up 236.4% to $905.2m.
Breaking down this performance, operations in its native Australia accounted for $38.2m in revenue for the quarter, an increase of 146.5% on $15.5m last year.
Player spending in Australia climbed 137.2% year-on-year to $423.2m, with PointsBet having experienced a 90.0% increase in the amount of active players in the country to 158,041. The operator in Q3 also signed up basketball legend Shaquille O’Neal as a brand ambassador in Australia.
Turning to the US, revenue here rocketed 709.1% year-on-year from AU$3.3m in Q3 of last year to $26.7m in the most recent reporting period.
Consumers in the US wagered $482.0m during Q3, which was 431.4% up on last year and more than the total amount spent by players in Australia during the period.
PointsBet said this was boosted by a 461.7% jump in the number of US active players in Q3 to 127,500, as well as the number of major sports events that took place in the quarter, which in turn attracted more bets. This included the conclusion of both the National Football League season.
The operator was active across New Jersey, Illinois, Indiana, Iowa, Colorado and Michigan in Q3. New Jersey remained its core market, accounting for $18.5m in quarterly revenue and $199.6m in player bets.
Revenue in Illinois was $6.1m, then $400,000 in Indiana, $1.5m in Colorado and $300,000 in Iowa, with the operator reporting a $1.2m loss in Michigan for the period.
Another development in the US in Q3 was the acquisition of sportsbook solutions provider Banach Technology for US$43.0m. PointsBet said the deal strengthened its position in the in-play sports betting market in the US and accelerated its technology roadmap.
Looking at costs for Q3 and PointsBet saw large year-on-year increases in spend across several key areas. The main outgoing was advertising and marketing, with some $45.1m spent, up 544.3% on last year.
Product manufacturing and cost of sales expenses hiked 231.6% to $25.2m; administration, corporate costs and goods and services tax 200.0% to $11.7m; and staffing costs 15.5% to $9.7m.
PointsBet received $177,000 in interest income, but also accounted for $155,000 in interest and other finance costs. The operator also recorded a further $637,000 net decrease related to player cash accounts.
This resulted in a $24.7m net loss for the period, compared to $10.5m in the same period last year.