Pointsbet (ASX:PBH) expands despite big expenses

Company News

by Lauren Evans

Pointsbet (ASX:PBH) posted revenue of $194.7 million for the year ending 30 Jun 2021, up 159 per cent from the year thanks to strong momentum in their Australian and US businesses.

The online wagering platform recorded earnings before interest, taxes, depreciation and amortisation of $162.3 million, up 30.9 per cent from the prior year. Their Australian market was boosted by the covid-19 pandemic given growth in the online sector, meanwhile a number of acquisitions were successfully completed in the US. 

While revenue soared, Pointsbet took the opportunity to expand its business and committed to $244.1 million of operational expenses. 

Pointsbet introduced a refreshed brand campaign in the Australian market featuring NBA basketball player Shaquille O'Neal, as well as increased operating jurisdictions quarterbacked by NBC Sports in the US.

The number of employees hired in the year rose 103 per cent, while money was also put into their technology and data platforms as betting volumes increased.  

Post expenses, the company faced a net loss after tax of $164.3 million, compared to $39.7 million in the prior year.

Pointsbet are confident in their gambling initiatives and believe they now have all the pieces in place for FY22 and beyond. Given the development of the company, they decided to pay no final dividend. 

Shares in Pointsbet (ASX:PBH) are trading 2.1 per cent lower at  $10.00.

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