Shares in the wagering company more than doubled last reporting season. What’s in store tomorrow?
The post The Pointsbet (ASX:PBH) share price rocketed 115% last time the company reported appeared first on The Motley Fool Australia. –
The Pointsbet Holdings Ltd (ASX: PBH) share price more than doubled last time the company reported its full-year results.
Investors will be keen for a similar performance when the company reports tomorrow.
Let’s take a look at how the Pointsbet share price reacted last earnings season.
Pointsbet share price doubles on FY20 report
When Pointsbet released its results last August, shares in the wagering company stormed more than 115% higher in early trading.
However, as the day drew on, many investors looked to cash in profits and the Pointsbet share price finished around 85% higher for the day.
Highlights from the company’s FY20 report included;
Revenue of $75.2 million, a 193% increase from the prior corresponding period (pcp)
Net revenue growth of 159% on pcp
Earnings before interest, tax, depreciation and amortisation (EBITDA) positive of $6.9 million
110,000 active clients, up 39% from pcp
In addition, PointsBet highlighted its 5-year media deal with NBCUniversal. The deal provides the company with exclusive promotional rights and exposure to more than 184 million viewers.
How is Pointsbet faring in 2021?
The Pointsbet share price failed to continue its positive momentum into the new year.
Since the start of 2021, shares in the wagering company are more than 6% lower for the year.
As a result, the Pointsbet share price is flat compared to where it closed last reporting season.
There have been several catalysts that have weighed down the company’s share price this year.
Most recently, shares in the wagering company tumbled after flagging a capital raising following its quarterly update.
For the fourth quarter ending 30 June 2021, Pointsbet recorded a 182% increase in turnover to $986.1 million.
This was driven by a 63% increase in Australian turnover to $494.8 million and a 956% jump in US turnover to $491.3 million.
Pointsbet also informed shareholders of its intentions to raise $400 million in equity.
The company cited the need to raise funds in order to support its North American marketing, client acquisition, technology and product development.
The company has already completed its institutional placement to raise a further $215.1 million at $10.00 per new PointsBet share.
In addition, Pointsbet recently completed its $81 million institutional entitlement offer.
Pointsbet is scheduled to release its results for FY21 tomorrow.
The Pointsbet share price was trading at $10.48 at the market close yesterday.
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Motley Fool contributor Nikhil Gangaram 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.