PointsBet Holdings (ASX:PBH), a Melbourne-based sports betting and iGaming company, has reported steady growth in Q1 FY25, driven by a balanced approach of market expansion and cost optimisation.
PointsBet operates across Australia, the United States, and Canada, with a focus on digital, in-play sports betting that lets users place real-time bets during live events. The company’s technology platform supports high-quality betting experiences, including "same game multi" betting, in a highly competitive and regulated global market.
In Q1 FY25, PointsBet achieved a total net win of $65.3m, up 12% year-over-year. Its core segment, sports betting, led the way with a net win of $60.7m. iGaming, the company’s casino-based gaming services, contributed $4.6m, a 50% increase from the prior year, underscoring PointsBet’s strategy to expand beyond sports betting.
Australia, PointsBet’s primary market, saw a slight decline in sports betting turnover, down by 2% to $557.5m. Despite this, PointsBet achieved an improved net win margin of 10.2%, leading to a 7% net win increase in Australia and a gross profit gain of 15%. PointsBet attributes these results to better management of marketing spend, focusing on high-efficiency campaigns. In Australia, 47.6% of its net win was allocated to tax and product fees, reflecting the company’s compliance with local regulatory costs.
Canada showed remarkable growth, especially in Ontario, where PointsBet expanded its footprint in iGaming and sports betting. Canadian sports betting turnover rose 57% to $69.3m, with a net win margin of 5.9%, resulting in a net win of $4.1m, up 77% from the prior year. In the iGaming sector, Canada achieved a net win of $4.6m.
PointsBet has implemented stringent cost-saving measures to sustain its cash flow, with Q1 net cash outflows totalling $5.6m due to operating expenses. At the end of the quarter, PointsBet’s cash balance was $33.6m, and the company aims to achieve cash flow breakeven by FY25-end. Notably, the company recorded $16.5m in sales and marketing spend, reflecting the start of peak acquisition periods in Australia and Canada.
Shares in PointsBet are trading 0.97% higher at 73 cents.
