PointsBet has posted its financial results for the first quarter of its fiscal year 2023 (Q3 2022), reporting improvements in group handle and net win year-over-year.
In the US, the operator saw its handle and net win grow YoY, while it continued to see increases across all KPIs in Canada compared to the previous quarter.
Posting its Q1 FY23 report, PointsBet declared a group sportsbook handle of US$732.3m, an 18% rise compared to the previous year (Q1 FY22: $620.4m). Total group net win was also up 13% YoY to $49.9m (2022: $44m).
Per vertical, sports betting net win improved by 4% YoY to $44.5m (2022: $42.6m), while igaming’s net win grew by 287% YoY to $5.4m (2022: $1.4m).
PointsBet’s cash and cash equivalents at the end of the quarter came in at $300.7m.
PointsBet US continues to grow
In the US, PointsBet saw its sportsbook handle improve by 50% YoY in Q1 FY23 to $331.6m (Q1 FY22: $220.7m), while its net win came in at $18.7m, a 101% rise YoY (2022: $9.3m).
Per vertical, the operator’s sports betting net win grew by 78% YoY to $14.1m (2022: $7.9m), while its igaming net win rose by 229% to $4.6m (2022: $1.4m). The operator did not provide a state-by-state breakdown of its Q1 performance.
The operator’s cash active clients for the 12 months to September 30, 2022, were 272,447, a 47% improvement on the same point the previous year.
During the quarter, PointsBet launched its online sportsbooks in Kansas and Louisiana, while also going live with a retail sports betting offering in Maryland. Its online sportsbook is now live in 12 states, whilst its igaming offering is available in four states.
Following the end of Q1, the operator also partnered with 1/ST TECHNOLOGY to grow US horse racing, launched its new content hub “PointsBet+” for its sportsbook app, and unveiled a new NFL live betting feature on the homepage of its sportsbook app called NFL Lightning Bets.
PointsBet added that its sportsbook app has been ranked third best in the US in app-by-app testing by Eilers & Krejcik, an independent US research firm, with only FanDuel and DraftKings ahead. The app was praised for its “fast speed, quick load times, and button feedback and response,” while its UX and UI are “on point”.
Marketing expenses for the US during the quarter came in at $22.8m, lower than the previous quarter as the operator took a more targeted approach, focusing “on regional/local investment in live states”.
Within its quarter presentation, the operator highlighted its target segment in the US, the “Super User”, who the firm described as “highly engaged users who bet on average three days per week,” that require a “personalized level of service” and a group that the operator believes are underserved in the US market.
PointsBet added that the “Super User” also loves to bet on live events “double that of the average user,” and across a wide variety of sports, and that they want an “elite product and user experience; they appreciate the best odds, breadth of markets and being able to place their bets quickly and easily”.
Canada operations improving quarter-over-quarter
PointsBet also continued making progress in Canada, declaring sequential quarter-over-quarter improvements across all KPIs.
The operator’s sportsbook handle in the region is up in Q1 FY23 by 31% compared to the previous quarter to C$18.1m, with live betting representing 59% of the total handle.
PointsBet net win in Canada has also improved by 887% compared to the last quarter to C$1.47m. Per vertical, sports betting net win came in at C$0.35m, while igaming achieved a net win of C$1.13m.
For the six months to September 30, 2022, the operator’s cash active clients in the region were 13,232. Its marketing expenses for the quarter came in at C$5.5m.
During the quarter, PointsBet Canada launched improvements to its online casino offering, held the PointsBet Invitational, a March Madness-style single elimination curling event that was broadcast nationally on TSN, and went live with its new brand campaign “Play On”, which helped increase brand awareness and consideration relative to key peers.
“It’s clear from our results in the US that we are delivering on our stated aim of growing net win,” commented CEO Sam Swanell during PointsBet’s presentation call.
“We’ve invested in our team, and in our technology products, and that investment is delivering revenue growth. Our marketing is more targeted, and this has allowed us to deliver this revenue growth with a reduced marketing spend compared to last year.”
Swanell added: “Both in the US and globally, we’re excited to see the continued revenue growth that we can achieve this quarter on the back of our ever-improving product and execution.”