Why PointsBet’s (ASX:PBH) shares fell 12% despite rise in Q4 net win

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Highlights

  • PointsBet reported improved net win margins in the fourth quarter of FY22.

  • PointsBet posted a 28% rise in net win to AU$755.2 million in its quarterly results.

  • The sports betting net win rose 32% from Q4 FY21 to AU$78.5 million.

Shares of PointsBet Holdings Ltd (ASX:PBH) fell over 12% in early trade on Friday despite it reporting improved net win margins in the fourth quarter of FY22. With this, the stock of the corporate bookmaker has fallen over 53% so far this year. Similarly, the share price is down over 65% in the past 12 months. However, the stock has gained over 42% in the past month. The stock’s 52-week high and low stand at AU$11.58 and AU$1.92, respectively.

Earlier today, PointsBet reported a 28% rise in net win to AU$755.2 million in its quarterly results for the three months ending 30 June 2022. Its net win margin was 9.2%, above last year’s 8.7%.

Highlights from PointsBet’s today’s announcement

  • The Sports betting net win rose 32% from Q4 FY21 to AU$78.5 million.
  • iGaming’s net win rose 400% from the prior corresponding period to AU$7.3 million.
  • Total corporate cash and cash equivalents stood at AU$472.7 million as on 30 June 2022.

Meanwhile, turnover/handle touched AU$1.30 billion in Q4 FY22, compared to AU$986 million in Q4 FY21. The total net win for the full 2022 financial year climbed 48% from FY21, up to AU$309.4 million.

ASX-listed PointsBet also announced the completion of an AU$94.2-million strategic investment and partnership with SIG Sports Investment Corp. It was in June 2022 that SIG Sports Investment Corp became PointsBet’s largest shareholder. SIG paid AU$94.2 million for a 12.76% stake.

“Upon issuance, this investment will represent 12.8% of PointsBet’s issued capital and make SIG Sports the company’s largest shareholder. There is no change to PointsBet’s board as a result of the equity placement,” PointsBet had then said in its ASX filing.

Agreement with Nellie Analytics

The European branch of PointsBet also inked an exploratory agreement with Nellie Analytics Ltd.

According to PointsBet, Nellie Analytics is expected to provide exclusive sports analytical services to “complement and enhance the operational capabilities of PointsBet Europe and accelerate the company’s technology roadmap as it relates to highly sophisticated risk management and trading algorithms, with a focus on in-play in the North American market”.

NOTE: Net Win is the dollar amount received from clients who placed losing bets less the dollar amount paid to clients who placed winning bet, less client promotional costs (the costs incurred to acquire and retain clients through bonus bets, money back offers, early payouts and enhanced pricing initiatives)



 


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