PointsBet tells shareholders it will break even by April
PointsBet chief executive Sam Swanell says he expects the wagering group to break even by April and be profitable by the next financial year after posting a significant rise in earnings in the three months to June 30.
Mr Swanell will focus on growing PointsBet Australia’s revenue and winnings after selling the company’s business in the United States last month to Jay Z-backed sports merchandise company, Fanatics, for $333 million.
He told analysts on Friday that shareholders will receive between $1.39 to $1.44 per share from the sale, and indicated plans to sell the local division were stalled. Shares were up 1.5 per cent at $1.68 after lunch.
PointsBet chief executive Sam Swanell will be able to concentrate on the Australian and Canadian business after the sale of the US division. Chris Hopkins
“The whole of FY24 for [the Australia and Canadian operations] won’t be profitable but… it will be run rating at breakeven come April. By FY25, at group level, it will be profitable. It’s a completely different company,” Mr Swanell said.
“You can never rule out if someone comes in and puts something very attractive in front of you… our focus very much is around proving the profile of the company has changed dramatically and that we’re going to be profitable in FY25. We can build a lot of shareholder value that, we believe, is not being recognised at the moment.”
The company’s quarterly results, released on Friday, show a 15 per cent climb in turnover from its US, Canadian and Australian operations to $5.7 billion and a 27 per cent increase to $391.1 million in net winnings for the full year. Cash flows from operating activities were $402.2 million for the period.
Mr Swanell said PointsBet had outperformed a challenging market.
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