Australian sportsbook operator PointsBet submitted in a filing to the Australian Securities Exchange (ASX) its financial year 2021 third quarter trading update as well as quarterly cash flow report.
Overall Performance
PointsBet revealed an impressive quarterly financial performance for the three-month period ended March 31, 2021 posting a turnover of AU$905.2 million, a 236% jump from the AU$269.1 million for Q3 FY2020.
The sportsbook operator generated AU$100.5 million in gross win, compared to only AU$26.8 million for the respective quarter in FY 2020, a 275% increase, while net win for Q3 FY2021 was AU$64.9 million, nearly two-and-a-half times higher than the AU$18.8 million in revenue for Q3 in the year prior.
Net win margin for the quarter was 7.2%, in line with the industry average, and the number of active clients jumped to 285,500 from 106,000 in the third quarter of FY2020, but cash on player accounts decreased by AU$637,000.
Cash outflows for the quarter exceeded revenues and PointsBet accounted for AU$27.4 million of cash used to finance its operations, including the cost of sales of AU$25.2 million, staff costs of AU$9.7 million, marketing costs of AU$45.1 million, and administration and corporate costs of AU$11.7 million. As of March 31, 2021, PointsBet cash balance stands at AU$328 million.
PointsBet Australia
Turnover from operations in its home market was AU$423.2 million, up from AU$178.4 million in the respective quarter for the financial year prior, representing a 137% increase. On a sequential basis, turnover was down 22% from the second quarter of FY2021 reading.
The gross win came out at AU$54.8 million, 159% increase from the reading of AU$21.2 million in FY2020 Q3, and 27% down from the previous quarter, while the number of active customers increased by 90% from 83,300 in Q3 FY2020, to 158,041 for the reported quarter.
PointsBet noted the market saw “client behavior shift to the higher margin multi segment”, outlining the importance of the advanced and competitive Australian market to support the company’s US strategy.
PointsBet US
US operations generated a turnover of AU$482 million, a 431% jump from the reading in the third quarter of the year prior to AU$90.7 million. The increase in turnover resulted in a gross win of AU$45.8 million, a 715% increase from AU$5.6 million year-over-year. The net win was AU$26.7 million, a 716% rise from AU$3.3 million for the three month period in the previous financial year. The net win margin for the business was at a record 5.5%.
The number of active customers in the US grew exponentially from 22,700 in the third quarter of FY2020, to 127,500 for the reported quarter, a 461% increase, as PointsBet boasts presence across New Jersey, Illinois, Indiana, Iowa, Colorado, and Michigan.
The third quarter also saw the appointments of NBA legend Shaquille O’Neill as PointsBet Australian ambassador and social media golf celebrity Paige Spiranac as the company’s lead on-air.