Insights

PointsBet (ASX:PBH) share price on watch after stellar sales growth but $187m loss

This sports betting company’s shares will be in focus today…
The post PointsBet (ASX:PBH) share price on watch after stellar sales growth but $187m loss appeared first on The Motley Fool Australia. –

The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch today.

This follows the release of the sports betting company’s full year results.

PointsBet share price on watch after strong year but large loss

Turnover up 228% to $3,781.4 million
Revenue increased 159% to $194.7 million
Normalised EBITDA loss of $156.1 million
Normalised loss after tax of $164.3 million compared to $39.7 million loss in FY 2020
Statutory loss after tax of $187.1 million
Cash balance of $276.2 million (including $30.6 million of client cash)

What happened in FY 2021 for PointsBet?

For the 12 months ended 30 June, PointsBet reported a 228% increase in turnover to $3,781.4 million. This was driven by a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.

Also growing quickly was its gross and net win. PointsBet’s gross win increased 201% to $353.1 million, whereas its net win jumped 152% to $207 million. This ultimately led to the company reporting a 159% increase in revenue to $194.7 million for FY 2021.

However, due to big increases in its cost of sales and operating expenses, PointsBet reported a normalised loss after tax of $164.3 million. This sizeable loss could potentially weigh on the PointsBet share price today.

One of its largest expenses was marketing. The company spent $51.4 million on Australian marketing. This includes a refreshed brand campaign featuring NBA MVP Shaquille O’Neal. Over in the United States, its marketing spend came to $119.2 million. Management explained that this reflects an increase in the number of operating jurisdictions. Its US marketing expense is expected to continue to increase as its footprint expands.

What’s next for PointsBet in FY 2022?

No guidance was given for FY 2022, nor has a trading update being provided for the first two months of the financial year.

However, management appears confident in the future after a busy year. In fact, it feels that everything is now in place to attack the massive US market.

It commented: “PointsBet has put together all the pieces of the puzzle needed to take advantage of the significant North American opportunity – with a continued focus on first class execution and building upon the growth and success achieved to date.”

The PointsBet share price is down 11% in 2021.

The post PointsBet (ASX:PBH) share price on watch after stellar sales growth but $187m loss appeared first on The Motley Fool Australia.

Should you invest $1,000 in PointsBet right now?

Before you consider PointsBet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and PointsBet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Tuesday

ASX 200 midday update: Fortescue result and dividend impress, Altium sinks

Pointsbet (ASX:PBH) share price slips following denied betting licence
The Pointsbet (ASX:PBH) share price rocketed 115% last time the company reported
3 rapidly growing ASX tech shares to buy

Motley Fool contributor 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 and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!