PointsBet reports very strong growth in Ontario in Q3 FY24

The Third Quarter of the 2024 Fiscal Year 

PointsBet has recently released the documents of its Q3 FY24 financial report. 

Here, the company recorded a very strong Year-over-Year (YoY) growth in the Canadian online gaming and sports betting market. 

In the documents released on April 23rd, 2024, PointsBet revealed data that determined the following: 

• The company’s iGaming operations in the province of Ontario, a fully licensed and regulated online gaming and sports betting market, fueled a 53% Year-over-Year growth in net win. 

The total net win for PointsBet in the category of online gaming, all coming from the company’s operations in Ontario, totaled $4.9 million CAD.  

PointsBet offers its iGaming services in both Ontario and its home country Australia, however its Australian iGaming market is solely comprised of sports betting, whereas its Ontario iGaming market also includes online gaming. 

For this reason, we can determine that the entirety of the company’s total net win for online gaming came from its operations in the Canadian province of Ontario. 

On the other hand, PointsBet’s total net win for the category of sports betting was quite a bit lower, at $3.8 million CAD. Despite this, however, PointsBet’s Q3 financial report indicated that this value represents a Year-over-Year growth of 78%. 

As an explanation to this massive growth in revenue, PointsBet stated that this can be attributed to “improved trading margin and continued gains in promotions efficiency.” 

In addition to this, PointsBet reported that they experienced a 12% increase in the number of customers who had placed a cash bet in the 12 months before the end of the reporting period.  

This increase was determined from the values reported during the previous quarter of the same fiscal year. 

In the Q3, it was also reported that PointsBet’s total sports betting handle resulted in $63.1 million, a 39% increase from the Q3 FY23, whilst its total gross win was $5.9 million, a 64% increase from the Q3 FY23. 

The Results of the Q3 FY24 

Below, you will find all the financial metrics released by PointsBet in their Q3 FY24 financial report.  

This includes their group financial metrics combining both their Canadian and Australian markets, as well as the individual financial metrics of Canada and Australia respectively. 

Keep in mind that all figures listed in the tables below are in Australian dollars. 

The Overall Financial Metrics for both Canada and Australia 

Sports Betting 

iGaming 

Total 

Points highlighted in PointsBet’s Q3 FY24 for the Financial Metrics of both Canada and Australia 

• “Combined Australian and Canadian business delivered record Net Win of $70.6 million, up 24% on the PCP, accelerating from the 14% growth delivered in H1.” 

• “Net cash flow of $2.0 million for the quarter, another first and important milestone in the Company’s history.” 

• “Re-confirm guidance for FY24 Normalised Group EBITDA loss of ($9-$14) million.” 

• “The Company confirms it expects to deliver positive Normalised Group EBITDA in FY25.”

The Overall Financial Metrics for Canada  

Sports Betting 

iGaming 

Total 

Points highlighted in PointsBet’s Q3 FY24 for the Financial Metrics of Canada 

• “Strong Net Win of $9.9 Million, up 62% vs the PCP.” 

• “Sports Betting Net Win up 78% vs the PCP, driven by improved trading margin and continued gains in promotions efficiency.” 

• “iGaming Net Win up 52% vs the PCP.” 

• “43K Cash Active Clients, up 12% from Q2 FY24.” 

• “Completed integration with Strive Gaming to accelerate growth in iGaming business.” 

The Overall Financial Metrics for Australia 

Sports Betting 

Points highlighted in PointsBet’s Q3 FY24 for the Financial Metrics of Australia 

• “Net Win growth of 20% vs the PCP, with continued market share growth.” 

• “Continued improvement in efficiency of generosity spend: 20.9% vs 27.8% in the PCP.” 

• “221k Cash Active Clients, up 1% from Q2 FY24.” 

• “Sport delivered double digit growth in Net Win vs the PCP, with Racing Net Win growing vs the PCP.” 

• “In Q3 FY24, $26.4 million in GST, Point of Consumption Tax, and Product Fee payments to Australian Governments and Racing and Sports Bodies, representing 43.4% of Net Win.” 

Summary of Quarterly Cash Flows listed in PointsBet’s Q3 FY24 

• “At 31 March 2024, the Company had $67.2 million of statutory Corporate Cash, with Adjusted Corporate Cash of $74.7 million.” 

• “Company received US$50.0 million post Subsequent Completion on 4 April 2024.” 

• “First positive net cash flow quarter in the Company’s history of $2.0 million.” 

• “Cash inflow from operating activities was $5.4 million. The Company expects total operating cash flows for Q4 FY24 to be positive.” 

• “Net cash from investing activities during the quarter was $14.2 million. This included full repayment of loan from PointsBet USA Holding Inc., offset by additional payments related to the US Business Sale.” 

Comments made regarding these results

Sam Swanell, the CEO of PointsBet, made the following statement regarding the positive growth of the company in both Australia and Ontario: 

“I’d like to acknowledge the entire PointsBet team for their significant efforts through what was a lengthy and complex technical and operational migration.” 

With regards to the regulatory pressure that PointsBet is facing in Australia, and the exponential growth in revenue that the company is still seeing despite these hurdles, Swanell had the following to say: 

“It’s an interesting one because we continue to grow strongly. Our results in Australia, in a market that’s under some pressure, continued quarter-on-quarter.” 

“We think that the principal racing authorities in particular, they’re very aware of the negative impacts that would result from further point of consumption rates increases.” 

The Second Quarter of the 2024 Fiscal Year 

PointsBet reports record net win of $61.5M CAD for Q2 FY24 

In the documents released for its Q2 FY24 report, PointsBet had recorded a very strong growth in the Ontario iGaming market. 

Across all divisions located in Canada and Australia, PointsBet reported a total net win of $61.5M CAD.  

The sports betting company experienced an increase in both handle and net win values. The biggest growth that they experienced, however, was by PointsBet’s vertical. 

The results of PointsBet Canada 

The total net win of PointsBet Canada resulted in CAD $9.2 million (AUD 10.5 million). This value represents a whopping 109% increase from the values reported during the same period last year. 

In addition to this, the country experienced a significant increase in sports betting net wins: 94% year-over-year (YoY) increase. The net win from iGaming in Canada also increased, with a 119% year-over-year (YoY) increase. 

The marketing expenses accrued by PointsBet Canada also declined by 12%. 

The results of PointsBet Australia 

PointsBet recorded a net win of around CAD $52.3 million (AUD $59.5 million) in Australia. When compared to the figures recorded during this same period last year, the company achieved a 3% year-over-year (YoY) increase. 

In addition to this, the marketing expenses of PointsBet Australia decreased by 33%.  

The company’s gross win percentage from promotions also resulted in a significant reduction, with 32.5% recorded in the Q2 financial report. This can be compared to the figures recorded during the same period the previous year which resulted in 38.2%. 

Overall Results 

The total sports betting turnover recorded by PointsBet across all divisions consisted of approximately CAD 858.9 million (AUD 976.4 million). This value represents an increase of 4% from the values recorded during the same period the previous year. 

A sports betting gross win of CAD $83.04 million (AUD $94.4 million) was accumulated. This resulted in a year-over-year increase of 3%.  

In addition to this, the total net win for sports betting resulted in CAD $55.9 million (AUD $63.5 million), and therefore a 6% year-over-year increase. 

The total net win accumulated for iGaming, on the other hand, was significantly lower: CAD 5.6 million (AUD 6.4 million). Despite this value being considerably smaller than that corresponding to the net win accumulated for sports betting, this figure also represents a 119% year-over-year increase. 

In this way, PointsBet’s total net win for the second quarter of their 2024 financial report resulted in CAD $61.5 million (AUD $69.9 million). 

PointsBet’s recent integration with Strive Gaming 

PointsBet and Strive Gaming have recently announced a partnership in which the development of PointsBet’s online casino product will take place.  

PointsBet is a strong force in the live sports betting industry, and Strive Gaming is a gaming platform software provider whose focus lies on the North American market.  

This strategic long-term collaboration has been forged with the intention of utilizing Strive Gaming’s cutting-edge technology to diversify the casino products offered by PointsBet. This will be accomplished with the integration of multiple content providers onto a unified PointsBet platform.  

PointsBet seeks to develop its online casino product in Ontario. This partnership, they believe, will allow them to enhance the iGaming market and shape the Canadian gaming landscape, thus elevating 'the online casino experience for users in Ontario'.  

In addition to this, PointsBet’s aim in utilizing Strive Gaming’s technology is to strengthen the company and complement PointsBet’s existing technology. 

More about PointsBet 

“PointsBet is Ontario's best new legal online bookmaker and casino. Originally founded in the mature sports wagering market of Australia, PointsBet is one of the fastest growing online gaming operators in North America. The company prides itself on offering unmatched speed and ease of use across every customer touchpoint, as well as the deepest slate of pre-game and in-play sports betting options.  

“PointsBet is an online gaming operator listed on the Australian Stock Exchange with operations in Australia, Canada, Ireland, and the United States. We have an excellent track record related to compliance, consumer protection, and responsible gaming. We are committed to the Canadian marketplace and work with regulators across the nation to help ensure our sports betting ecosystem is operating in a manner that will benefit consumers, operators, and the province itself.”