No extra funding required for PointsBet 2024 profits

Lea Hogg November 28, 2023
No extra funding required for PointsBet 2024 profits

Redefining its financial strategy, PointsBet Chairman Brett Paton (in photo above), announced at the Annual General Meeting that the company anticipates achieving EBITDA profitability in 2024 without the need for additional external funding. The revelation comes amid ongoing negotiations for the sale of PointsBet’s US operations to Fanatics, positioning the company for a more focused and streamlined future.

Canada at the centre of PointsBet’s 2024 strategy

Paton emphasized PointsBet’s commitment to profitability in 2024, shedding light on the company’s evolving strategy, especially in Canada. The chairman highlighted the enhanced structure of PointsBet’s Canadian business, citing lower capital requirements and higher operating margins compared to most US states. Paton sees “strong prospects for attractive future economics” in Canada, making it a pivotal element in PointsBet’s quest for profitability.

CEO Sam Swanell echoed this sentiment, emphasizing the advantageous factors contributing to the Canadian market’s appeal. These include a lack of partner fees, a workable tax rate, and the inclusion of iGaming, creating a complementary synergy with the more mature Australian business. Swanell sees the Canadian expansion as an opportunity to leverage PointsBet’s tech stack in ways not available in the Australian market.

Fanatics sale and PointsBet’s streamlined future

Providing updates on the ongoing sale of its US business to Fanatics Betting & Gaming, PointsBet revealed that the deal is progressing as anticipated, with a targeted completion by March 2024. The transaction grants Fanatics access to 15 US states through market access agreements, with PointsBet streamlining its operations by transferring control of 10 states to date.

Paton emphasized the significance of the Fanatics deal, stating that the remaining PointsBet business, active in Australia and Canada, will benefit from a “more focused approach.” After the deal’s full closure, the group’s EBITDA is projected to be close to breakeven, with no external funding expected to achieve this result.

PointsBet’s valuable in-house proprietary platform

While divesting live odds technology to Fanatics as part of the acquisition, PointsBet retained its invaluable in-house wagering technology assets in Banach. CEO Swanell explained the importance of this technology as having a critical role in the company’s success. The retained proprietary platform and trading tools position PointsBet for a robust future in both the Australian and Canadian markets.

Despite the announcement, PointsBet Holdings Limited (PBH.AX) is currently trading at $0.77 (5.48 percent). As the company navigates its path toward profitability, shareholders and industry observers await further developments, keenly watching the execution of PointsBet’s strategic vision and its impact on the gaming industry.

Related topics:

Entain’s challenges as Goldman Sachs downgrades stock – SigmaPlay

Vietnam’s ambitious $2.2 billion resort in Van Don gains momentum (www.alopecia-sydney.com)

South Korea confronts escalating teen online gambling addiction (www.alopecia-sydney.com)

Recommended for you
David Gravel
2024-10-18 19:30:00
Bruna Garcia
2024-10-18 14:46:09