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- PointsBet (PBH) has wrapped up a busy September quarter, securing several new partnerships including with NBC Universal
- The company also completed a $353.2 million capital raise and at the end of September had more than $457 million in cash or cash equivalents
- Overall, the group recorded a turnover of $691.9 million in the quarter, a 193 per cent increase on the prior corresponding period (pcp)
- In terms of the net win, PointsBet recorded $38.1 million, or a 5.5 per cent net win, compared to $11.8 million or 5 per cent in the pcp
- Much like the rest of the consumer discretionary sector, PBH shares are trading lower today, down 5.56 per cent at $10.37
PointsBet (PBH) has wrapped up a busy September quarter, securing several new partnerships and completing a multimillion-dollar capital raise.
Activities
During the quarter the company signed a 5-year media partnership with NBCUniversal, becoming its official betting partner, in exchange for a US$393 million (around A$540.17 million) marketing spend.
PointsBet simultaneously announced and has since completed, a $353.2 million capital raise comprising an entitlement offer and a share placement.
The company also secured several other partnerships, with Kroenke Sports & Entertainment, the Detroit Tigers, Pacers Sports & Entertainment, Indianapolis Colts and Chicago Bears and Twin River.
The latter gave the company iGaming access in New Jersey. PointsBet also launched in Illinois and relaunched in Indiana during the quarter.
Australian growth
In Australia, PointsBets recorded a turnover of $527.7 million in the September quarter, a 221 per cent increase on the prior corresponding period (pcp). Active clients shot up 73 per cent to 124,700.
The company reported a gross win of $60.5 million, or 11.5 per cent, up from $17.3 million or 10.6 per cent in the pcp respectively.
In terms of the net win, PointsBet recorded $35.1 million, or 6.6 per cent net win margin, compared to $12.6 million or 7.7 per cent in the pcp.
Group growth
Overall, the group recorded a turnover of $691.9 million in the September quarter, a 193 per cent pcp increase. Active clients jumped 88 per cent to 164,500.
The company reported a gross win of $70.4 million, or 10.2 per cent gross win margin, up from $18.4 million or a 7.8 per cent gross win in the pcp respectively.
In terms of the net win, PointsBet netted $38.1 million, or a 5.5 per cent net win, compared to $11.8 million or 5 per cent in the pcp.
Corporate
As at September 30, 2020, PointsBet had no borrowings and, thanks to the recent capital raise, $457 million in cash or cash equivalents. The company affirms it is well funded to achieve its strategic objectives and planned activities.
During the quarter, PointsBet received $38.1 million in customer receipts. Operating cash outflow was principally incurred from the cost of sales, non-capitalised staff costs, marketing costs and administration and corporate costs.
Net cash used on operating activities was more than $10 million and net cash spent on investing activities was approximately $15.3 million, much of which related to market access payments.
Much like the rest of the consumer discretionary sector, PBH shares are trading lower today, down 5.56 per cent at $10.37 at 2:05 pm AEDT.
