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  • Q3 FY24: PointsBet plans A$127m capital return after Fanatics sale
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PointsBet plans to return A$127m (€77.2m) in capital to shareholders following the completion of the sale of its US business to Fanatics.

The Australian sports betting and iGaming operator reported A$70.6m in revenue in Q3 of its financial year 2024 (three months ended 31 March), up 24% from the same period in 2023.

Sports betting dominated the results, contributing A$65.1m to the total. However, iGaming also demonstrated continued growth with revenue rising 55% to A$5.5m.

The period was the first net cash flow positive quarter in the company’s history, as it delivered A$2.0m.

PointsBet said it believes it will see between A$9m and A$14m in EBITDA loss in FY24, before achieving group-wide EBITDA profitability in FY25.

The operator reported 221,000 and 42,000 cash active customers in Australia and Canada respectively during the quarter.

It also completed the sale of its US arm to Fanatics Betting & Gaming in Q3, receiving a $50m final payment.

CEO Sam Swanell said: “I’d like to acknowledge the entire PointsBet team for their significant efforts through what was a lengthy and complex technical and operational migration.”

The company today announced a A$127m capital return to shareholders, working out at A$0.39 per share.

The capital return payment will be sent to shareholders on 16 May 2024, and was first announced at the business’ August annual general meeting.

This is the second such capital return undertaken by the business since the sale was announced.

All together, PointsBet will return A$442m to shareholders across both capital return programmes.

PointsBet sees Australian growth despite regulatory pressure

Swanell remained bullish on the Australian market, where several operators have struggled in the face of tightening regulation.

“It’s an interesting one because we continue to grow strongly,” said Swanell. “Our results in Australia, in a market that’s under some pressure, continued quarter-on-quarter.”

The executive said he didn’t foresee state governments opting to increase point of consumption tax further.

This follows Victoria opting to increase its point of consumption tax from 10% to 15% in July 2023.

“We think that the principal racing authorities in particular, they’re very aware of the negative impacts that would result from further point of consumption rates increases.”

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