PointsBet upgrades full-year EBITDA guidance after projecting smaller FY24 loss

Australian sports betting and iGaming operator PointsBet has revised its full-year EBITDA guidance, anticipating a smaller loss for FY24.

The company now expects a normalized EBITDA loss between AU$4- AU$6 million (US$2.6-$4 million), an improvement from the previously estimated loss range of AU$9 million ($6 million) to AU$14 million ($9.3 million). In FY23, PointsBet reported a normalized EBITDA loss of AU$49 million ($32.6 million) for continuing operations.

The company attributed the improved outlook to ongoing, enhanced trading performance in the second half of the year, as well as better operations and productivity.

Sam Swanell, managing director and CEO of PointsBet, highlighted the positive outlook as particularly notable given the sale of PointsBet’s US business in August last year. Fanatics acquired PointsBet US for $225 million, outbidding DraftKings.

“Today’s guidance upgrade is a result of the company’s continued strong trading performance together with improved efficiency and productivity. It is particularly notable to see that the company has been able to continue to deliver such impressive results, while simultaneously undertaking a complex technical and operational migration, separation and re-organisation, with the recent completion of the sale of the US business,” Swanell said.

He stated that PointsBet is now focusing on investing in its core technology offerings and products. The sale of PointsBet US has positively impacted the company’s operations and was a key driver for its H1 results. During H1, net loss was reduced by 79.6% to AU$36.4 million ($24.2 million). Statutory revenue for the first half of the year increased by 6.7% to AU$117.9 million ($78.6 million).

The first half of the year also marked PointsBet's first EBITDA-positive period, achieving AU$900,000 ($600,000), a significant improvement from the AU$20.2 million ($13.4 million) loss year-on-year.

Since the US deal, Fanatics has gradually taken control in states where PointsBet was already active, completing this with a launch in New Jersey earlier this month. The Fanatics Sportsbook is now available to 95% of the US online market, including states such as Arizona, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Vermont, Virginia, and West Virginia.