PointsBet CEO Sam Swanell has reiterated the group’s intent on US expansion as the group’s revenue handle, gross win and net win all grew in Q3 2022.
Publishing its financial report for the third quarter of FY2022, PointsBet recorded total sports betting handle of $1,001m, up 54% year-on-year as its US expansion plan bore fruit.
Q3 saw the group launch sports betting in New York, Pennsylvania and Ontario and igaming in Pennsylvania and Ontario, taking its number of live online sportsbook states to 10 plus Ontario and the number of igaming live states to four plus Ontario.
Such expansion saw PointsBet grow its US sports betting turnover by 70% up to $586.1m, with a gross win of $33.0m, up 1% YoY. The group’s US cash active clients stood at 249,497, up 96% YoY.
Including the $3.94m from its igaming division, this delivered a net win of $17.61m, down 8% YoY attributed to large promotional costs used to acquire high-value, long-serving customers.
Swanell commented on the group’s US performance: “In the United States, Net Win is now up 157% year to date compared to the PCP. PointsBet is among an exclusive group of operators that are live in New Jersey, Pennsylvania and New York.
“We are pursuing the US opportunity by building a business focused on customer economics, spearheaded by industry-leading technology and innovation across in-play betting.
“With our igaming offering gathering steam, the expansion into more US states and our recent launch in the Ontario market in Canada, the building blocks are in place. We remain focused on efficient marketing spend that delivers long-term, high-value customers.”
On a holistic group view, taking into account its Australian business operations, PointsBet posted a gross win figure of $89.4m, up 24% YoY driven by a 44% increase in its Australian gross win. Net win for Q3 stood at $51.1m, up 10% YoY, again attributed to a strong presence in Australia – where net win increased by 37% YoY.
The group’s Australian figures also included app downloads, which has increased by 11% YoY, as well as marketing costs, which was $5.1m for the period.
Moving forward, the group is aiming to continue to deliver upon North American growth opportunities, with a sharp focus on customer economics and in-play betting.
It has earmarked four key areas to execute the plan, including leading on in-play betting, targeting customers driven by sports betting, continuing to improve its igaming products and build a larger team in the region.
Swanell added: “PointsBet has driven strong growth over the quarter improving our core trading metrics and expanding our addressable market. Sports Betting Turnover was up 54% marking a new quarterly company record of A$1.4bn and total Net Win was up 18% at A$76.9m versus the PCP, which is a testament to the quality of our team and our expansion strategy.
“The Australian trading business continued its strong performance during the quarter with Net Win up 37% on the PCP. With a focus on profitability for the remainder of the financial year, we continue to expect positive EBITDA for the Australian Trading business for FY22.”