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Highlights
- PointsBet spoke on the potential transaction of its Australian trading business.
- The company confirmed to be in discussions with NTD Pty Ltd.
- Shares of PointsBet reacted positively to the news, up 6.877%.
Today morning (28 December), the online sports betting company PointsBet Holdings Limited (ASX:PBH) spoke in relation to a recent media speculation of the sale of its Australian trading business.
PointsBet informed the market that the company keeps exploring options to maximise value for its shareholders, and this potential sale rumour is consistent with its usual business tactics. The company's official ASX report states that PointsBet keeps receiving acquisition proposals from external parties for its Australian trading business from time to time.
Following the news, the share price of PointsBet surged 6.877% on the ASX as of 2:36 PM AEDT, 28 December, with one share of PointsBet being valued at AU$1.437. Despite today’s significant increase, PointsBet’s shares have declined by 12.50% in the last five trading sessions and 24.47% over the previous 30 days. Additionally, shares of PointsBet dropped in value by 41.19% over the last six-month period, 78.89% on year-to-date (YTD), and 79.32% in a year.
Is PointsBet selling its Australian trading business?
In a recent ASX release, PointsBet confirmed that the company is currently on talking terms with NTD Pty Ltd for the sale of its Australian trading business. NTD represents itself as owner and operator of an Australian wagering operator named Betr. PointsBet also stated that the company's global strategy and opportunities would be taken into consideration while evaluating any potential transaction.
Furthermore, there is no guarantee that the current preliminary nature of the negotiation between PointsBet and NTD will result in a legally binding agreement between the two parties.
What else is new at PointsBet?
Last week on 23 December, PointsBet answered ASX’s price query in relation to the recent trading in its securities. The company said that it is cognizant of its responsibilities for ongoing disclosure.
Despite PointsBet’s lack of guidance, the company is currently trading in line with analyst consensus for FY23. With a forecasted group net win of between AU$100 million and AU$105 million compared to the Q2 FY22 group net win of AU$77.3 million and Q1 FY23 group net win of AU$78.8 million, Q2 FY23 is on track to be a record net win quarter for the group, assuming normalised trading through the end of the year.
