PointsBet Forecasts Substantial Improvement: Anticipates EBITDA Loss Reduction to AUD 4-6 Million from Previous AUD 9-14 Million

6 months ago 0 302

PointsBet Holdings, an ASX-listed bookmaker, has released a significant update to its EBITDA guidance, reflecting robust year-to-date trading and enhanced operational efficiency and productivity.

PointsBet

Improved EBITDA Guidance

According to PointsBet, the operator now anticipates a normalized EBITDA loss for the fiscal year to be in the range of AUD 4 ($2.6 million) to AUD 6 million ($4 million). This marks a substantial improvement from the previous FY24 guidance, which projected an EBITDA loss between AUD 9 ($6 million) and AUD 14 million ($9.3 million). Notably, this projected loss represents a significant improvement compared to the FY 2023 normalized EBITDA loss of ($32.7).

CEO’s Comments

Sam Swanell, PointsBet’s group chief executive officer and managing director, attributed the update to the company’s continued strong trading performance and increased efficiency and productivity. He emphasized that despite the complexities of technical and operational migration, separation, and re-organization, PointsBet has delivered impressive results, highlighted by the recent completion of the sale of its US business.

Strategic Focus

Swanell affirmed that PointsBet remains committed to investing in its growth, enhancing core tech and product capabilities, and increasing market share. The company’s current strategy aims to set PointsBet up for further successes in FY 2025 and beyond.

Stable Business Operations

PointsBet operates internationally, with a presence in Australia and Canada. Despite uncertainties surrounding additional tax hikes in Australia, the company remains confident in its stability and future prospects. The recent Q3 results underscore positive trends across the board, instilling confidence in PointsBet’s business outlook.

Strategic Sale of US Assets

Earlier this year, PointsBet completed the strategic sale of its US assets to Fanatics for $225 million. This move allowed PointsBet to focus its efforts on markets where it has a strong foothold. The transaction mutually benefited both companies, streamlining PointsBet’s business operations while expanding Fanatics’ presence in the competitive US market.

Conclusion: The EBITDA

The updated EBITDA guidance from PointsBet reflects the company’s commitment to operational excellence and growth. With a focus on enhancing core capabilities and strategic market expansion, PointsBet is poised for continued success in the evolving landscape of the global sports betting industry.

FAQs on PointsBet Holdings’ EBITDA Guidance Update

1. What update has PointsBet Holdings recently announced?

PointsBet Holdings has released an update to its EBITDA guidance, reflecting strong trading performance and increased operational efficiency.

2. What is the revised EBITDA loss range for PointsBet Holdings for the fiscal year?

The company now anticipates a normalized EBITDA loss in the range of AUD 4 million to AUD 6 million, a significant improvement from the previous guidance.

3. How does the projected EBITDA loss for FY24 compare to previous years?

The projected loss for FY24 represents a substantial improvement compared to the FY 2023 normalized EBITDA loss.

4. What factors contribute to PointsBet Holdings’ improved EBITDA guidance?

PointsBet attributes the improved guidance to its strong trading performance and increased efficiency and productivity.

5. What strategic move did PointsBet Holdings recently undertake?

Earlier this year, PointsBet completed the sale of its US assets to Fanatics for $225 million, allowing the company to focus on markets where it has an established presence.

6. What is the CEO’s outlook on PointsBet Holdings’ future?

CEO Sam Swanell expressed confidence in the company’s stability and future prospects, highlighting ongoing investments in growth and core capabilities.

7. In which countries does PointsBet Holdings operate?

PointsBet Holdings operates internationally, with a presence in Australia and Canada.

8. How did the recent Q3 results impact PointsBet Holdings’ outlook?

Positive trends across the board in the recent Q3 results instilled confidence in PointsBet’s business outlook, despite uncertainties surrounding additional tax hikes in Australia.