2 leading ASX shares that are growing rapidly

Pointsbet and Pinnacle are two ASX shares that are rapidly growing.

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The two ASX shares in this article are ones that are growing their revenue and earnings capabilities at a fast pace.

One of the only similarities between the two businesses, besides the quick growth, is that they both begin with the letter P. In terms of the sector, one is a corporate bookmaker and the other is business that invests in fund managers and helps them grow.

The below two ASX shares are growing rapidly:

Pointsbet Holdings Ltd (ASX: PBH)

Pointsbet is a sports wagering operator and iGaming provider, offering sports and racing betting products and services direct to clients through its platform.

In August 2020, Pointsbet announced a media partnership with NBC Universal to become the official sports betting partner of NBC Sports in the US. Pointsbet explains this partnership provides the ASX share with access to leading national and regional television and digital assets, with the largest sports audience of any US media company, with over 184 million viewers.

The NBC deal is one of the ‘pieces’ of the strategy that Pointsbet believes can make it a market leader. Other parts of the strategy includes its leading brand ambassadors and its profitable Australian business coupled with “strong” US market share growth.

In FY21, Pointsbet experienced a 228% increase in turnover to $3.78 billion and a total net win increase of 154% to $208.5 million. In Australia, cash active clients jumped 117% year on year to 196,585. Meanwhile, US cash active clients jumped 661% to 159,321.

The ASX share continues to announce a steady increase of new partnerships in the US. The latest one was with Austin FC (from the Major League Soccer) to pursue opportunities in Texas. No bill has been passed in Texas, but it is expected that legislation will be introduced in upcoming sessions to permit sports betting to be offered by racetracks and professional sporting teams.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The idea behind Pinnacle is that it can take investment stakes in fund managers and help them grow. It says that it provides the ideal environment to enable its boutiques to produce superior investment performance.

Pinnacle frees investment professionals from unnecessary distractions, and it aims to only work with high-quality individuals.

The ASX share prices services like product distribution, marketing and business development, licencing and insurance, compliance and risk, company secretarial and legal counsel, HR, IT, operations support, responsible entity services and so on.

Some of its current investments include Antipodes, Coolabah Capital, Firetrail, Hyperion and Plato.

FY21 saw a lot of growth for the business. Aggregate affiliate funds under management (FUM) increased by 27% over six months to $89.4 billion at 30 June 2021. Aggregate retail FUM rose 22% to $20.3 billion from 31 December 2020 to 30 June 2021.

Total net profit after tax more than doubled to $67 million, funding an 86% increase of the full year dividend 28.7 cents per share.

Pinnacle reported continued affiliate medium-term outperformance, with 80% of five-year affiliate strategies having outperformed as at 30 June 2021.

Closing FUM of $89.4 billion was more than 20% higher than the average FUM through FY21.

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Motley Fool contributor Tristan Harrison 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 PINNACLE FPO and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended PINNACLE FPO. 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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