The Pointsbet Holdings Ltd (ASX: PBH) share price has come under pressure on Thursday following the release of its first full year result since listing on the share market.
In afternoon trade the corporate bookmaker's shares are down 8% to $2.98.
Despite today's decline its shares have still gained 49% since its $2.00 per share $75 million IPO in June.
How did Pointsbet perform in FY 2019?
For the 12 months ended June 30, Pointsbet delivered a 173% increase in revenue to $25.6 million.
This strong top line growth was driven by a 254% increase in registered clients to 123,180, a 244% lift in betting turnover to $567 million, and a 174% jump in its net win to $28.2 million.
But due to a sharp increase in operating expenses partly to support its U.S. expansion, the company reported an operating (EBITDA) loss of $32.7 million on a normalised basis and an operating loss of $37.2 million on a statutory basis. Pointsbet's normalised results were adjusted to exclude the impact of significant non-recurring items and adjustments.
This ultimately led to the company reporting a normalised loss after tax of $34.4 million and a statutory loss after tax of $41.9 million.
Pointsbet chief executive officer, Sam Swanell, was pleased with FY 2019 and appears very optimistic on the future, particularly in relation to its U.S. opportunity.
Mr Swanell said: "PointsBet is on the starting line of the nascent US sports betting opportunity. It is estimated that if all 50 States legalise online sports betting, the market revenue opportunity will be US$17.3 billion per annum. Pending favourable legislation, PointsBet already has market access agreements for ten US States with a combined population of approximately 81 million, with those States representing an estimated sports betting revenue market of US$4.6 billion per annum."
"The team is laser focused on the clear opportunity ahead and is structured in such a way to deliver maximum economies of scale as we enter new markets. Through our in-house technology platform and one team global structure, PointsBet will benefit from operating margins that deliver a competitive advantage for the long term," he added.
FY 2020.
The company revealed that it has had a solid start to FY 2020.
According to the release, its year to date FY 2020 Group Net Win is currently at $9.1 million, which is up 237% on the prior corresponding period. No guidance was provided for the full year.
