PointsBet confirms discussions regarding sale of North American business

29 April 2023


Industry News

PointsBet confirms discussions regarding the sale of North American business

This article provides an update on Australian gaming operator PointsBet and its plans for the sale of its North American business. The company confirmed that it is in talks with multiple parties regarding the sale, while also revealing that it has terminated previous discussions to sell its Australian business to a News Corp-backed gaming venture. Despite this setback, PointsBet remains engaged in discussions with other third parties who have expressed interest in acquiring the business. The article also covers the company's financial performance, including strong revenue growth in its North American and Canadian operations, but also highlighting the expected earnings loss for the second half of FY23. Finally, the article discusses the cost-cutting measures PointsBet has taken, including a reduction in headcount and a review of operational workforce efficiency.

PointsBet, an Australian gaming driver, has verified that it’s presently in addresses with multiple parties regarding its North American business. The company terminated preliminarily reported American business etrade talks to vend its Australian business to the News Corp- backed gaming adventure behind the Betr brand. The company said it continues to engage in conversations regarding strategic deals that offer the eventuality to add value for its shareholders.

During the quarter ended March 31st, this business achieved a remarkable gross gaming profit of AU$106.6 million (equivalent to £56.4 million, €63.9 million or $70.2 million), representing a remarkable 39% increase from the $76.9 million reported in the previous period. While the Australian division experienced a slight dip in profits, down 3% to $50.7 million compared to $52.3 million previously, the overall performance of the company remains highly impressive. It is clear that this business is thriving and poised for continued success in the highly competitive gaming industry.

PointsBet achieved in the same period the former time. Expansion in the company’s North American operations drove the growth, with profit rising 103% to $49.8m. Despite this profit growth, PointsBet is awaiting an EBITDA loss of between$77.0 m and$82.0 m for H2 FY3. The business anticipates a decrease of approximately 30% in cash outflow, which includes changes in player cash, compared to H1 FY23. Due to these pressures, the company has tried to cut costs to drive the business toward profitability. The streamlining of operations resulted in a 12% reduction of headcount, which is anticipated to affect annualized cost savings of roughly $6m.

During the quarter, PointsBet cut its cost of deals10.5 to$55.5 m compared to the$61.3 m the business spent in the former period. While the driver saw modest rises in costs early in its other spending streams, the amount was similar, and that costs eventually fell across the board. The company’s expenses on deals and marketing increased to $69.0 million compared to the $67.5 million spent in the previous quarter, while staff costs saw a slight uptick to $26.8 million from $25.5 m to $26.8 m from$25.5m. Administrative costs also increased $0.8 m to $19.7 M from $18.9 m.