The Pointsbet Holdings Ltd (ASX: PBH) share price is defying the market weakness and charging higher.
At one stage today, the sports betting company's shares were up 6% to $1.76.
They have since pulled back but remain up 3% to $1.71.
Why is the Pointsbet share price rising?
Investors have been bidding the Pointsbet share price higher today after the company released its fourth-quarter update. Here's a summary of how it's continuing operations performed compared to the prior corresponding period:
- Quarterly turnover from continuing operations down 11% to $544.8 million
- Gross win down 6% to $75.6 million
- Net win margin up 1.7 percentage points to 10.6%
- iGaming net win up 453% to $3.6 million
- Total net win from continuing operations up 10% to $61.1 million
What happened during the full year?
For the three months ended 30 June, Pointsbet's quarterly turnover from continuing operations was down 11% to $544.8 million. Despite this decline, the company's continuing operations recorded an 11% lift in turnover to $2,827.3 million for FY 2023.
Things were even better on the bottom line, with Pointsbet reporting net win growth on both a quarterly and annual basis. Net win from continuing operations rose 10% to $61.1 million in the fourth quarter and 7% to $230 million in FY 2023.
Including its US business, which is in the process of being sold for ~A$333 million, Pointsbet's net win increased 26% to $391.1 million for the year.
Outlook
Once the US business sale is complete (expected March 2024), Pointsbet expects to see its costs reduce materially. This will be from lower spending on technology expenses, corporate expenses, and staff costs.
In light of this, the company believes its earnings before interest, tax, depreciation and amortisation (EBITDA) will be at or close to breakeven from April 2024.
This will be thanks largely to the Australian business, which it expects to "significantly offset EBITDA losses" from the Canadian business in FY 2024.
