PointsBet posts 16% revenue growth for FY24, leverages $225 million US business sale for future expansion

Australian sports betting and iGaming operator PointsBet announced a 16% increase in revenue for the full year 2024, reaching $267.1 million, as the company capitalized on significant cash reserves from the recent sale of its US business to Fanatics for $225 million.

The company closed the fiscal year with a record quarterly cash flow of $7.1 million in Q4, and cash reserves totaling $28.1 million. PointsBet’s gross profit margin stood at 50%, while it reported an EBITDA loss of $1.8 million, notably lower than the previously forecasted $4 million to $6 million range.

PointsBet’s core sports betting business saw a net win increase of 13.6% year-on-year to $248.3 million, with its profit margin rising from 7.7% to 8.5% in FY24. In the Canadian market, the company reported a significant 124% surge in betting win to $15.2 million, alongside a 31% increase in turnover to $255 million. iGaming net win in Canada also saw impressive growth, rising 63.5% to $18.8 million.

Australia remained a key market, with net win from sports betting up 10.1% to $233.1 million and a 1.7% increase in turnover to $2.68 billion. The net win margin improved from 8% to 8.7%. Cash active betting clients in Australia grew by 4% in Q4.

Sam Swanell, CEO of PointsBet, stated: “We continue to invest to further growth, particularly in our core technology and product capabilities and through our strategic marketing investment. This is driving our market share growth in Australia and Canada and setting the company up for further success.”

He noted that the US business disposal has left the group with significant cash reserves to invest in new projects. The company remains "well capitalized to invest in further growth and execute ongoing operational and strategic plans," he said.

PointsBet also reported a reduction in marketing spend by 21%, as the company scaled back advertising across TV and in-stadium to mitigate exposure risks associated with gambling promotions. The firm will no longer display its ads on free-to-air television during peak hours and has ended sponsorship deals with the Manly Sea Eagles and Cronulla Sharks starting from 2025.

Swanell noted that “Canada remains an earlier stage market with strong growth potential,” emphasizing that PointsBet’s growth exceeded the overall Canadian market in 2024.