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PointsBet announces strong start to FY2021

| By Robin Harrison
PointsBet saw turnover and revenue grow significantly in the first quarter of its 2021 fiscal year, thanks to customer acquisition efforts in its native Australia, and expansion into new US states.

Turnover for the three months ended 30 September grew 193.4% year-on-year to $691.9m (£378.9m/€417.6m/$493.3m), of which $527.7m came from Australia, up 221.0%. US stakes contributed the remaining $164.2m, a 130.0% improvement on the first quarter of FY2020. 

This came during a period where PointsBet looked to take advantage of structural changes in Australia to grow its audience, such as the merger of BetEasy and SportsBet following from Flutter’s acquisition of The Stars Group, and customers shifting online. 

This saw customer numbers in Australia grow 73.2% to 124,715, while its US customer base grew 158.9% to 39,816.

In the US, it continued its expansion will a re-launch of its offering in Indiana, as well as going live in Illinois, and gaining a presence in the national media through its partnership with NBC Sports.

After player winnings, gross revenue came to $70.4m, a 282.6% rise from the prior year. This broke down to a $60.5m contribution from Australia, and $9.8m from the US. 

Once revenue-related costs were factored in, including losses from Illinois and Indiana due to high levels of investment in customer acquisition, net revenue for the quarter amounted to $38.1m, a 222.9% year-on-year rise. 

Australia contributed the vast majority, at $35.1m, while the US contribution swung from an $0.8m loss in Q1 2020 to $3.1m. 

Turning to outgoings, PointsBet’s cost of sales, comprising product manufacturing and operating costs, jumped to $19.0m, while advertising and marketing spend jumped 261.7% to $28.6m. 

Personnel and administrative costs both declined marginally during the quarter, and thanks to an $11.6m increase in amounts held in player accounts, PointsBet’s net spend on operating activities came to $10.0m. 

Capital expenditure for the quarter stood at $15.3m, and thanks to the operator’s $353.1m capital raise, after transaction costs it held $342.1m in net cash for financing activities as of 30 September.

It therefore held cash and cash equivalents of $457.1m at the end of the quarter, having had reserves of $144.3m at the beginning of the reporting period, and no corporate borrowings. This, PointsBet noted, meant it had the necessary funds to achieve its strategic objectives and planned activities. 

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