Insights

PointsBet (ASX:PBH) share price on watch after explosive Q1 growth

The PointsBet Holdings Ltd (ASX:PBH) share price could be on the move on Tuesday after revealing further explosive growth in Q1 of FY 2021…
The post PointsBet (ASX:PBH) share price on watch after explosive Q1 growth appeared first on Motley Fool Australia. –

3 men at bar betting on sports online 16.9

The PointsBet Holdings Ltd (ASX: PBH) share price will be in focus this morning after the release of the sports betting company’s first quarter update.

How did PointsBet perform in the first quarter?

PointsBet was a very strong performer in the first quarter and recorded exceptional growth across all major metrics.

For the three months ended 30 September, the company reported turnover of $691.9 million, up 193% from the prior corresponding period.

The majority of PointsBet’s turnover continues to be generated in the Australian market. The Australian business reported a 221% increase in turnover to $527.7 million, which was supported by a 130% increase in US turnover to $164.2 million.

Growing at an even quicker rate was the company’s gross win metric, which lifted 282% to $70.4 million for the quarter. This comprises Australian gross win of $60.5 million and US gross win of $9.8 million. The net win metric also grew strongly, up 222% on the prior corresponding period to $38.1 million.

At the end of September, PointsBet had a total of 164,500 active clients, up 88% since this time last year. This comprises 124,700 Australian clients and 39,800 US clients. The latter was up 159% on the prior corresponding period.

Net cash used in operating activities was $10 million. Though, excluding movement in player cash accounts, net cash used in operating activities was $21.6 million. Management notes that its operating net cash outflows were driven by cost of sales ($19 million), non-capitalised staff costs ($6.4 million), marketing costs ($28.6 million) and administration and corporate costs ($5.8 million).

Despite these outflows, PointsBet finished the period with a hefty $436.5 million of corporate cash. A significant amount of this is held in US dollars.

Outlook.

While no firm guidance was given for the remainder of the financial year, management appears positive on its outlook.

It commented: “The Company recognises a structural change in the Australian online wagering market, including brand consolidation (BetEasy, previously the third largest brand in the Australian market merging with SportsBet during the quarter) and a shift from retail (venue) to online wagering. As a result, the Company is pursuing a strategy to increase Net Win growth and market share.”

Whereas in the United States, it notes that its NBC Sports deal aligns the company with a 2025 US$12 billion opportunity.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post PointsBet (ASX:PBH) share price on watch after explosive Q1 growth appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!