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PointsBet Holdings today (20 May) announced it is raising its FY24 guidance following a strong H2 trading performance.

The Australian sports betting operator said the year-to-date results have benefited from increased operational efficiency and productivity.

This led to PointsBet upgrading its expected normalised EBITDA loss for FY24 to between A$4m and A$6m, compared to the previous guidance of a A$9m-A$14m loss.

This normalised total excludes the impact of the sale of its US business to Fanatics Betting & Gaming, which closed last month.

In comparison, PointsBet recorded an EBITDA loss of A$49m for continuing operations in FY23.

Group CEO Sam Swanell said: “It is particularly notable to see that the company has been able to continue to deliver such impressive results, whilst simultaneously undertaking a complex technical and operational migration, separation, and re-organisation, with the recent completion of the sale of the US business.

“We continue to invest for further growth, in particular in our core technology and product capabilities and our outsized marketing investment.

“This is driving our market share growth and setting the company up for further success in FY25 and beyond.”

Following the improved guidance, the business has seen its share price increase nearly 10% today.

PointsBet’s journey towards profitability

The news marks PointsBet’s latest progress in its journey towards profitability, following on from the business’ first cash flow positive quarter earlier in the year.

In its previously released outlook, the company said it expects to achieve positive group-wide EBITDA in FY25.

It added that it believed it would achieve or come close to EBITDA breakeven from April 2024.

Following the sale of its US business, the operator remains active in both the Australian and Canadian markets, with Australia representing the vast majority of revenue.

Swanell remained bullish on the business’ prospects for the Australian market in Q3, despite the expected impact of regulatory tightening.

The operator has also been the subject of M&A speculation over the past year, with rumours Matt Tripp’s Betr would make a bid for the rump business.

However, this failed to come about, with Betr opting to merge with ASX-listed rival operator BlueBet in April.

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