PointsBet chief executive Sam Swanell has outlined a focus on technology to deliver growth in Australia and Canada following the group’s departure from the US.
Swanell told investors at the AGM that PointsBet remains on course to break even this year and deliver growth in FY25. The CEO reiterated the rationale behind the $225.0m sale of its US business to Fanatics. He also gave an update on growth targets in its remaining Australian and Canadian markets.
Central to its performance, Swanell said, will be the proprietary technology powering its own platforms as well as Fanatics. In total, PointsBet’s platform handled more than $7bn in wagers during the most recent financial year.
PointsBet also retains the rights to use and further develop the Banach “Oddsfactory” technology assets. This drives in-play, parlay products and cash-out features in Australia, Canada and the US.
“The strength of our technology has also been validated through our sale of the platform to the Fanatics,” Swanell said. “While we have provided Fanatics with a perpetual licence to our technology platform, importantly we retain ownership of this technology. That means we can develop and exploit it in a manner that creates the most value for PointsBet shareholders.
“I believe it is important for shareholders to understand just how valuable our technology has become. It has been one of the critical features of our company and it bodes well for the value and the future of the Australian and Canadian business.”
Swanell added: “The bottom line is that our technology organisation is not just agile; it’s a powerful, reliable machine that can handle both the horizontal and vertical scaling needs of the market, making our app highly user-friendly and efficient. We believe our technology will continue to drive our success in the upcoming year and beyond.”
PointsBet on track to deliver targets
In his address, Swanell said PointsBet remains on track to deliver its FY24 guidance following the first five months.
Revenue from continuing operations in Australia and Canada have grown from $26m in FY19 to an anticipated $230m-$250m in FY24.
This would be 10%-20% up on FY23. PointsBet still expects continuing operations to be run-rating at EBITDA monthly breakeven around April 2024 and to be EBITDA positive in FY25.
“This means we can deliver strong ongoing growth profitably and do not anticipate any external funding requirements to deliver this outcome,” he said.
Turnover at PointsBet fell 3.4% to $611.0m during its Q1 2024, ending 30 September. This was despite the company’s Canadian turnover rising 111.4% to $44.2m. Its Australian turnover, however, fell 7.3% to $566.9m.
PointsBet’s net win from sports betting continuing operations grew 14.7% to $55.1m. Net win from igaming also surged 130.7% to $3.0m. This brought the total net win from continuing operations to $58.2m, up by 18.0%.