The Pointsbet Holdings Ltd (ASX: PBH) share price is in focus this morning after the bookmaker posted its full year earnings.
The Pointsbet share price last traded at $3.29.
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Pointsbet share price in focus on FY22 earnings
Here are the key takeaways from the S&P/ASX 200 Index (ASX: XJO) consumer discretionary favourite's financial year 2022 (FY22) results:
- Revenue came in at $296.5 million – 52% higher than that of the prior corresponding period (pcp)
- Sports betting turnover lifted to $5 billion – a 32% increase
- Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell to a $243.6 million loss – down from the pcp's $156.1 million loss
- Gross profit rose 39% to $121.6 million
- After tax loss deepened by 43% to a $267 million loss
- Earnings per share (EPS) slumped to a $1.048 loss
The company posted a group net win of $309.4 million for FY22 – a 48% year-on-year increase. It also boasted 513,182 million active clients at the end of the period.
In Australia, the company saw a third consecutive year of positive EBITDA, bringing in $7.7 million.
Over in the respective US and Canada markets, its EBITDA came in at a $197.4 million loss and a $15.6 million loss.
What else happened in FY22?
The financial year just been was a busy period of growth for the company.
It expanded its presence in the US and rolled out sports betting operations in four new US states; West Virginia, Virginia, New York, and Pennsylvania. It also launched iGaming operations in New Jersey, West Virginia, and Pennsylvania, and sports betting and iGaming operations in Ontario, Canada.
The company also welcomed a major strategic investment from SIG Sports Investment Corp in June 2022 and completed a $400 million capital raise in August 2021. That helped it close FY22 with a cash balance of $472 million.
The Pointsbet share price tumbled 77.5% over the 12 months ended 30 June.
What did management say?
In a letter to shareholders, Pointsbet chair Brett Paton and managing director and CEO Sam Swanell commented:
It has been another successful year for PointsBet. During the year, the company continued to capitalise on its expanding US presence … We currently have live online sportsbook operations in 10 US states plus Ontario, Canada and are live with iGaming in 4 states plus Ontario, Canada.
In SIG Sports we have found a strategic long-term partner who believes in PointsBet' ability to continue to grow and compete in the North American sports betting market. Susquehanna has both the analytical capability and the capital to help PointsBet realise this potential.
What's next?
Pointsbet didn't provide any new earnings guidance today. However, it did outline its predicted path forward.
The company believes North America will likely deliver the majority of regulated global gaming growth over the next decade.
It plans to take advantage of its partnerships with NBC, SIG Sports, Nellie Analytics, and Maple Leaf Sports and Entertainment in Canada to capitalise on the apparent opportunity.
Pointsbet share price snapshot
The Pointsbet share price has had a rough slog as of late.
It has fallen 52% so far this year. It's also currently 67% lower than it was this time last year.
In comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.
