Pointsbet share price tumbles 12% despite reported net-win improvements

The corporate bookmaker's full 2022 financial year total net win leapt 48% from FY21, up to $309.4 million.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published July 29, 2022 10:57 am AEST

The Pointsbet Holdings Ltd (ASX: PBH) share price is tumbling in morning trade, down 12.2% after opening 4% higher.

Pointsbet shares closed yesterday trading for $3.57 and are currently trading at $3.14.

This comes following this morning's release of the S&P/ASX 200 Index (ASX: XJO) corporate bookmaker's quarterly results for the three months ending 30 June (Q4 FY22).

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls — Image source: Getty Images

Pointsbet share price falls despite improving win margins

Total net win increased 41% year-on-year to $85.8 million, up from $60.8 million
Sports betting net win increased 32% from Q4 FY21 to $78.5 million
iGaming net win increased 400% from the prior corresponding period to $7.3 million
Completed a $94.2 million strategic investment and partnership with SIG Sports Investment Corp for a 12.76% stake
$472.7 million in total corporate cash and cash equivalents as at 30 June

What else happened during the quarter?

The Pointsbet share price also isn't getting a boost today from the 32% year-on-year increase in turnover/handle the company reported. That's the dollar amount wagered by clients before any winnings are paid out or losses incurred.

Turnover/handle hit $1.30 billion in Q4 FY22, up from $986 million in Q4 FY21.

The company also reported on its full 2022 financial year total net win, which leapt 48% from FY21, up to $309.4 million.

Pointsbet said its new partnership with SIG Sports, a member of the Susquehanna International Group of Companies, will help it grow and compete in the North American sports betting market.

During the quarter, Pointsbet's European branch also entered an exploratory agreement with Nellie Analytics Limited, itself a member of the SIG Group.

According to the release, Nellie Analytics will provide exclusive sports analytical services to "complement and enhance the operational capabilities of PointsBet Europe and accelerate the company's technology roadmap as it relates to highly sophisticated risk management and trading algorithms, with a focus on in-play in the North American market".

Pointsbet share price snapshot

With today's big slide factored in, the Pointsbet share price is down 54% in 2022. That compares to a year-to-date loss of 8% posted by the ASX 200.

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