Why PointsBet’s (ASX:PBH) share price tumbled 11% today

August 31, 2022 02:22 PM AEST | By Sonal Goyal

Why PointsBet’s (ASX:PBH) share price tumbled 11% today — Image source: © Danabeth555 | Megapixl.com

Key financial highlights of PointsBet FY22

PointsBet reported revenue of AU$296.5 million, 52% higher than the previous year.
EBITDA loss surged by 56% on the prior year to AU$243.6 million.
Loss of the year is AU$266.9 million, up 62% on FY21.
Gross profit during the year increased from AU$87.6 million in FY21 to AU$121.6 million in FY22.
Total operating expenses increased to AU$365.6 million.
The company entered FY23 with a cash balance of AU$519.6 million.

Image source: © Apinancgphoto | Megapixl.com

The company also highlighted that it has 513,182 group active cash clients. In FY22, the net win was AU$309.4 million, a 48% growth on year-on-year basis.

The group was EBITDA positive in the Australian trading business.

Worth mentioning here is that the company has not declared any dividend for FY22. The certainty of future dividend payment depends upon the director’s consideration of the company’s overall financial condition, earnings, level of franking credits available and capital requirements.

Management Commentary

In a letter to shareholders, CEO and managing director Sam Swanell and chairman Brett Paton said,

Outlook for FY23

Paton and Swanell’s comments indicated that the company is optimistic about the regulated global gaming growth in North America over the next ten years. To compete in the North American market, the company has scaled its team to get market access and in-house technology access.

The company has entered partnerships with Maples Leaf Sports and Entertainment, Nellie Analytics, SIG Sports and NBC to grab the growth opportunities.

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