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PointsBet Latest provider of detailed quarterly surges

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pointsbet latest provider of detailed quarterly surges

PointsBet Latest provider of detailed quarterly surges

USD 100 bills. AFP PHOTO / NOEL CELIS (Photo by NOEL CELIS / AFP)

Australia-based sports betting operator PointsBet detailed the status of its business in a conference call chaired by company executives last week. Citing their global reach, those same executives pointed to an increased presence in the exploding US legal sports betting scene due to their impressive third-quarter growth.

It was a marketing boost and the ability to infiltrate new US betting courts that brought charges against PointsBet’s growing handles in the third quarter. Although the quarter actually ended with a net loss due to the cost of expansion, the company is posting positive cash on hand as the world emerges from the COVID-19 crisis and sports betting becomes more mainstream around the world.

About this income

PointsBet reported on Thursday that their global handle hit $ 704.2 million in their call for profits, and a net profit from those numbers of $ 50.5 million. Their total value represents an increase of 236% over the previous year, while the net profit is 246% higher than in the same period last year. The company’s net earnings rate was around 7%, which is average for the global sports betting scene.

As mentioned earlier, PointsBet closed the quarter with a net loss of $ 21.3 million, mainly due to the cost of rapidly expanding within the US scene. On the upside, however, the company had $ 255.1 million in cash with no outstanding debt.

US presence of PointsBet

PointsBet’s strong moves in the US legal sports betting market last quarter were instrumental in moving the company into a new tier of legal sports betting. With 6.9% market share in New Jersey and 7.5% market share in Illinois, PointsBet reached new heights in six states and with market access in 16 states.

Their US handle for the third quarter was $ 375 million, up 431% year over year. Their net income for the period was $ 20.8 million, a whopping 716% higher than the third quarter last year.

The number of active users in the US market rose to 127,470, an increase of 461% year over year and an 87% increase since the last quarter. This growth was primarily due to PointsBet gaining market access in Mississippi and Pennsylvania through its existing, valuable and mutually beneficial relationship with Penn National.

Not done with expansion plans

PointsBet has been aggressive and largely successful with its global expansion plans, but in Thursday’s call to investors, Brass said it wanted to become an even bigger factor in the US market.

While PointsBet lives in six states, PointsBet has market access in 16 states – some of them have launched their own legal sports betting platform, others have not. The goal set on Thursday was for PointsBet to be active in 18 states by the end of 2022 and gain market access to the potential Canadian $ 5.9 billion market that hasn’t even been legalized.

The company’s acquisition of Banach Technology for $ 43 million on March 16 also aims to expand not only reach within the US scene, but also PointsBet’s in-play betting offering for its customers to expand around the world. In-play is widely seen as the future of the betting industry and could eventually represent 75% of PointsBet’s business. At the moment it’s only 20%.

The challenges ahead

PointsBet faces a number of challenges. One is the sheer volume of competition in the market, especially in the US. Much of the competition has a strong existing customer base, and some have an integrated base thanks to the DFS platforms that existed prior to the US Supreme Court lifting the general ban on sports betting in 2018. The two DFS providers became sports betting providers in this case you have one serious leg up.

Customer acquisition costs are another major obstacle for PointsBet and are indirectly related to the competition. According to the latest statistics from PointsBet, the initial cost is dropping below $ 500 per new user – others like the DFS brands are said to be in the range of $ 200 for initial cost.

PointsBet’s partnership with NBC Sports, which has a presence in all of the heavyweight betting states of New Jersey, Illinois, Indiana, Colorado, Michigan and Iowa, puts the company in a good position for the future. An upcoming launch in Pennsylvania also gives the betting company industry credibility.

PointsBet has seen exponential growth over the past 12 months. Your net loss can be counted towards “business expenses”. Given that expansion could slow down for the betting company in the near future, we may be talking about huge profits rather than net losses for the company at this point in the next year.

Source * www.sportsbookreview.com – * Source link