PointsBet CEO Sam Swanell wants the betting operator to break even by April and become profitable by 2025. PointsBet (ASX: PBH) is one of the biggest bookmakers listed on the ASX, but it has struggled to turn some profit, as it has been focusing on growing the business in the markets where it operates.
However, the company posted a noticeable increase in earnings for April, May and June this year. PointsBet’s quarterly report shows that the betting operator’s turnover rose by 15% to $5.7 billion and the company raked in $391.1 million in net winnings for the year, a 27% increase.
PointsBet sold its US business to Fanatics for $333 million last month. Swanell told analysts that PointsBet shareholders would get anywhere between $1.39 and $1.44 per share as a result of the sale. The PointsBet chief executive also said that they were no longer thinking about selling their Australian business.
Outperforming a Challenging Market
Swanell informed analysts that the 2024 financial year wasn’t going to be profitable for the bookmaker’s operations in Australia and Canada. However, he expected the betting company to break even by April next year and by the end of the next financial year (FY25) to finally turn a profit.
The CEO added that after the sale of the US business, they now had “a completely different company.” The PointsBet chief was quite happy that the company was outperforming a challenging market and delivered annual results that were only 2% down, while the market was down 5%.
Swanell also commented on the company’s performance during COVID, saying they “squeezed a few years’ growth into one year.” However, it was clear the market would slow down sooner or later and the PointsBet CEO said that was “just unwinding now.”
His expectations are that the 2024 financial year will be “marginally positive” for their online betting operations despite the challenges the bookmaker will face.
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