Total sports betting handle was down 4.2% year-on-year for the quarter at A$976.4m, compared to A$1.02bn in the same period of the previous year.
An increased sports betting net win margin of 6.5% (up from 5.9%), however, helped the business to deliver A$63.5m in total betting net win, up 6.2%.
It also saw its iGaming net win in the Canadian market more than double to A$6.4m, giving the business total net win of A$69.9m, up 11.3% year-on-year.
The vast majority of sports betting handle (A$901.6m out of A$976.4m) and net win (A$59.5m out of A$63.5m) came from PointsBet’s home market of Australia, where the net win margin was up from 6.2% to 6.6%.
Those figures were bolstered by more efficient promotional spend, PointsBet said, as the cost of promotions in Australia fell from 38.2% of gross win to 32.5%.
That improvement was driven by the implementation of tokens and improved data science and CRM capabilities, it said, helping it to offer more personalised promotions to its customers.
Quarterly marketing expenses were also down 33% year-on-year in Australia, to A$13.6m.
In addition, PointsBet said it had reduced its total number of cash active clients during the quarter to 218,288, but managed to increase the number of positive net win cash active clients in the calendar year 2023 compared to 2022, while reducing the number of negative net win clients.
“There are a bunch of clients out there that for want of a better word are bonus chasers,” said CEO Sam Swanell on the company’s Q2 earnings call.
“And part of what we’ve cleaned out over the last four months is leaking value to those clients unnecessarily, and that efficiency has been what’s helped grow our net win.”The company expects its number of cash active clients to grow in the coming quarters, it added, while maintaining its improved client mix.
Meanwhile in Canada, sports betting handle dropped 7% year-on-year to A$74.8m.
Still, a significantly improved net win margin of 5.4% (up from 2.6%) helped the business deliver sports betting net win of A$4m, up more than 90% from A$2.4m in the prior-year period.
Net win for iGaming was also up significantly at A$6.4m, more than double the A$2.9m recorded in Q2 FY23.
That left the business with a record total quarterly net win of A$10.5m in Canada, again more than double the A$5m recorded in the comparative period.
PointsBet said the integration of Strive Gaming, which has effectively tripled its library of available games, alongside improved promotional offerings, had helped to deliver the record revenue level in iGaming.
In Canadian sports betting, PointsBet’s gross win and net win margins were significantly improved year-on-year due to growth in parlay handle mix, the company added.
The number of cash active clients in Canada also increased 18% sequentially to 38,627, while PointsBet recorded its highest quarterly number of first time bettors since the launch of Ontario’s regulated market in April 2022.
Following the release of its results, PointsBet reiterated previously issued guidance for the full-year 2024.
Expectations for the year include total net win 10%-20% higher than in FY23, a gross profit margin of around 50% and total marketing expenses 15%-20% lower than the previous year.
FY24 normalised operating expenses are expected to fall between A$60m and A$70m, and the group expects to deliver normalised EBITDA at or close to breakeven from April this year.
Full-year EBITDA is expected to come in at a loss between A$9m and A$14m, but the business then expects to deliver positive group EBITDA in the full-year 2025.