PointsBet (ASX:PBH) share price halted after Q4 update

This sports betting company’s shares have been put in a trading halt…

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The PointsBet Holdings Ltd (ASX: PBH) share price won’t be going anywhere on Thursday.

This morning the sports betting company requested a trading halt.

Why is the PointsBet share price halted?

The PointsBet share price was placed in a trading halt this morning while it undertakes a capital raising via an institutional placement and entitlement offer.

At this point, no details have been provided in relation to how much the company is aiming to raise.

The PointsBet share price is expected to remain halted until Wednesday of next week.

Fourth quarter update

In addition to the capital raising, this morning the company has released its fourth quarter update.

According to the release, for the three months ended 30 June, PointsBet recorded a 182% increase in turnover to $986.1 million. This was driven by a 63% increase in Australian turnover to $494.8 million and a 956% jump in US turnover to $491.3 million.

This brought PointsBet’s full year turnover to $3,781.4 million, which was up an impressive 228% on FY 2020.

Driving this strong growth was a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.

Gross and net win growth

Also potentially giving the PointsBet share price a boost when it returns to trade was further strong growth in its gross and net win metrics.

PointsBet’s fourth quarter gross win increased 128% to $98.7 million and its net win rose 77% to $59.3 million. The latter was impacted by a 3.6 percentage point reduction in its net win margin to 6%. Nevertheless, its FY 2021 net win still increased 152% year on year to $207 million.

At the end of the period, the company’s corporate cash balance stood at $245.5 million, with no borrowings. Though, this looks set to be boosted by PointsBet’s aforementioned capital raising.

The PointsBet share price is up 116% over the last 12 months.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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