PointsBet has published its Q4FY2023 report, giving a glimpse into the health of the business that Fanatics will be acquiring later this year.
The Australian-owned betting and gaming group recorded A$102.3m in revenue for the three months ended June 30, marking global growth of 19% year-over-year. Sports betting handle dropped 18% YoY to A$1.07bn, but this was offset by 122% growth in igaming revenue, which stood at A$16.2m in the last quarter. Sports betting revenue also grew 10% to A$86.1m.
On the US side of the business, the sports betting handle dropped 24% YoY, reaching A$524.4m, indicating that the firm lost market share during the period. However, the firm managed to grow its sportsbook revenues by 20%, reaching A$28.6m for the last quarter.
This, PointsBet noted, was due to marketing expenses reducing by 26% and an improvement on its promotional efficiencies compared to previous periods.
On the online casino side of the business, revenue increased by 89% YoY, demonstrating the strong position it holds in the four US markets it is live in. This growth led to A$12.6m in revenue for the third quarter.
For the entire financial year ending June 30, PointsBet US made A$161.1m, up 72% YoY, broken down into A$117.3m in sports betting and A$43.8m in online casino.
This indicates that Fanatics is taking on a strong growing business that still requires investment that the parent company of PointsBet was incapable of providing for much longer than the rest of 2023.
Fanatics agreed to pay $225m for the PointsBet US division last month after a tussle with DraftKings over the acquisition. After PointsBet shareholders gave the green light to the deal, the work to transition the business to Fanatics is currently taking place.
Speaking to investors, CEO Sam Swannel detailed the progress of the transaction. He commented: “The PointsBet and Fanatics teams are progressing very well with the transitionary requirements. The US state-by-state regulatory approval process across our 14 jurisdictions is tracking as planned.
“We will send out the notice of meeting asking shareholders to approve the proposed distributions of $1.39 to $1.44 s. Soon. The targeted first tranche of approximately $1 per share is on track for a mid-September payment subject to shareholder approval and first close of the transaction.”
He added: “Both organizations are very excited about what a combination of the Fanatics brand, database and team together with PointsBet’s technology, market access, and team can achieve in the US gaming market.”