PointsBets chief executive has stated that despite a larger deficit in the initial six months of the year, its North American plan is yielding positive outcomes.
PointsBet reported earnings of A$178.1 million (£989,877/€1.10 million) for the initial six months concluding on December 31, 2022, representing a 28% year-over-year increase, but its loss expanded to A$178.2 million.
The majority of expenses during the six-month period were incurred in PointsBets US operations, which were also a significant contributor to the company’s revenue results, accounting for A$75 million of total earnings. This represented an 86.1% increase from the first half of 2022.
PointsBet introduced its sports betting product in Kansas and Louisiana in September 2022, followed by a launch in Maryland in November when the market officially opened.
By the end of the half-year period, PointsBet offered mobile betting in 14 states, retail betting in three states, and online casino in four states.
Since then, PointsBet opened a new retail sportsbook in Illinois in January, marking its fourth retail location.
Sam Swanell, managing director and group CEO of PointsBet, remarked that the company’s US operations are demonstrating strong performance.
“These outcomes show that our North American plan is effective – earnings are expanding, expenses are decreasing,” he stated.
They were the seventh largest online gambling firm in the United States, the world’s biggest and fastest-growing online gambling market, out of over 60 authorized operators.”
He also stated that the company is performing well in Australia, despite a slight decrease in revenue from $97.6 million in the first half of 2022 to $95.3 million.
Last month, PointsBet began discussions about selling their Australian operations to NTD Limited, a company owned by News Corporation. NTD Limited operates the Betr brand in Australia.
Betr was founded by influencer Jake Paul and Simplebet co-founder Joe Levy and launched in August 2022.
“The Australian business remains robust,” he stated. “In Australia, total wagers were $1.55 billion, up 14% from the previous year, and total profit was $105.3 million, down 2% from the previous year.”
By region
PointsBet generated $6.7 million from their Canadian operations, but there’s no comparison to the previous year because the Canadian sports betting market opened on April 4, 2022. Technology contributed the remaining $1.1 million in revenue, down 9.0% from the previous year.
Total wagers for the period were $3.2 billion, up 39.8% from the previous year. The United States generated the most of this, at $1.57 billion, a significant increase of 66.0% from the previous year.
Wagers in Australia were $1.55 billion, up 14.1%. Wagers in Canada were $101.3 million.
Total profit from sports betting was $158.2 million, up 13.6%.
Concerning regional distribution, Australia’s sports betting net income stayed fairly consistent, decreasing by 2.4%.
On the other hand, in the United States, sports betting net income increased by a more substantial 62.0%.
## PointsBet’s Six-Month Outcomes
The total cost of sales reached A$108.2 million, leading to a net profit of A$69.8 million. This net profit signifies a 27.6% rise compared to the same period in the previous year.
Other revenue amounted to A$3.7 million, comprising A$3.6 million in net foreign exchange gains and A$0.115 million in research and development earnings, partially counteracting this growth.
In terms of expenditures, marketing expenses were the highest at A$131.3 million. This was followed by employee benefits expenses of A$74.9 million and depreciation and amortization expenses of A$22.5 million.
The remaining A$26.8 million originated from various other costs, including consulting fees and administrative expenses.
Total expenses for the six-month period amounted to A$255.6 million, representing a rise of A$57.3 million year-over-year.
After taking into account A$4.6 million in financial income and A$2.1 million in financial expenses, the pre-tax loss was A$179.6 million.
After considering A$1.4 million in income tax benefit, the total loss for the period reached A$178.1 million.
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