Insights

Pointsbet (ASX:PBH) share price slumps on FY21 results. What’s next?

Triple-digit revenue growth and expansion plans weren’t enough to inspire shareholders on Tuesday
The post Pointsbet (ASX:PBH) share price slumps on FY21 results. What’s next? appeared first on The Motley Fool Australia. –

The Pointsbet Holdings Ltd (ASX: PBH) share price is falling after the company released its FY21 results this morning.

At the time of writing, Pointsbet shares are changing hands for $10.12 apiece, down 0.88% on the day. They have clawed back some ground after falling as low as $9.85 in early trade.

The sports betting business delivered triple-digit top-line growth but its net losses continued to balloon. Some key highlights for FY21 include:

Betting turnover up 228% to $3,781.4 million;
Active Australian clients up 117% to 196,585;
Active US clients up 661% to 159,321;
Revenue increased by 158% to $194.7 million;
Sales and marketing expense surged 382% to $170.7 million;
Net loss of $164.3 million (FY20: loss of $39.7 million).

Despite trading around 12-month lows of $10.00, Pointsbet is eyeing a number of growth opportunities to capture the emerging US sports betting market and maintain its growth trajectory.

What’s next for Pointsbet and its share price?

Continued momentum in Australia

Pointsbet Australia could be viewed as a solid standalone business, posting a 121% increase in net revenue and annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $9.2 million.

Pointsbet managing director and group CEO Sam Swanell described the result as one that “demonstrates Pointsbet’s capability to disrupt and grow market share in an advanced market where we compete successfully against global groups such as Flutter, Entertainment, and Bet365.”

Overall, Pointsbet aims to grow online Australian market share to 10% by 2025. However, this positive outlook wasn’t enough to help the Pointsbet share price today.

Capture North American growth opportunity

The United States is a focal point for the company’s growth story. Pointsbet said its goal is to achieve a 10% market share across all the states that it enters.

Pointsbet currently operates in 6 states including Illinois, Michigan, New Jersey, Indiana, Colorado, and Iowa. According to its results, the company holds a market share of between 7.8% and 3.1% across the 6 states.

Looking ahead, Pointsbet cites a strong pipeline of market access and launches in FY22. The company expects to launch in 11 US states and Ontario, Canada by the end of calendar year 2022.

In addition to sports betting, the company is also targeting the US iGaming market, following its inaugural launch in Michigan.

Between 5 May to 30 June, Michigan’s iGaming segment delivered a net win of A$1.5 million.

After successful launches in Michigan and New Jersey, Pointsbet is targeting launches in West Virginia, Pennsylvania, and Ontario, Canada in FY22.

Pointsbet share price snapshot

The Pointsbet share price is back to where it was a year ago, when the company announced a transformational marketing deal with NBCUniversal.

From a year-to-date perspective, the company’s shares are down about 12%.

The post Pointsbet (ASX:PBH) share price slumps on FY21 results. What’s next? 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

ASX 200 midday update: Harvey Norman’s record profit, PointsBet posts large loss

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

Motley Fool contributor Kerry Sun 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!