PointsBet reported a loss of AUD 32.3 million and a net profit of AUD 27.4 million. The company is set for more growth.
PointsBet ends fiscal year with net loss and revenue up
Sports betting operator PointsBet has reported a loss of AUD 32.3 million for the first half of its 2020/2021 financial year as a result of its expansion efforts in the US and Australia. Despite this, the company's net revenue actually increased significantly.
In the six months to December 31, PointsBet's net revenue rose sharply to AUD 27.4 million - an increase of more than AUD 126% compared to AUD 12.1 million generated in the same period of 2018.
The operator performed particularly well in Australia, its core market. Revenues in the first half of the year increased by 105% to $24.8 million, while turnover rose by 66.6% to $349.2 million. According to PointsBet, the growth is due to a significant increase in its Australian customer base. The company recorded a total of 81,014 registered users by December 31, a year-on-year increase of 76.8%.
The growing player base is a result of the company's increased customer retention efforts, as well as several new products and updates that it has recently introduced, PointsBet notes.
Continued growth in the US and the cost of growth
In the United States, the company managed to end the first half of the fiscal year with net income of $2.6 million. The result is mainly due to the growing business in New Jersey and the recent launch in Iowa.
This was PointsBet's first full six months of trading in the US market and things are looking up. The company plans to expand its presence in the dynamic US gambling market by launching in 11 more states in the coming months.
The operator's US customer base has grown to 21141 from a modest 35 in the first few months of fiscal 2019. This brings PointsBet's total customer base to 102155 users - an impressive 122.7% increase over the first half of 2019.
However, the company's rapid expansion in the US and Austria was also quite costly. Operating expenses increased by 185.6% to $41.7 million, compared to $14.6 million in the same period of 2019. Marketing expenses make up the largest share of the company's expenses and account for $20.6 million of the total.