PointsBet (PBH) Q4 2024 TU earnings summary

Executive summary

• Completed sale of U.S. business to Fanatics Betting and Gaming, receiving a final US$50 million installment and totaling US$225 million headline price, with a total of AUD 442.4 million ($1.39 per share) returned to shareholders across two capital returns.

• Achieved a record full-year group Net Win of AUD 267.1 million, up 16% year-over-year, and improved normalized EBITDA loss to AUD 1.8 million, a $47.2 million improvement from FY23, exceeding guidance.

• Q4 FY24 net win was AUD 68.4 million, up 12% on the prior corresponding period, with sports betting and gaming both contributing to growth.

• Company remains well-capitalized post-capital returns, with AUD 28.1 million in corporate cash as of June 30, 2024, and total cash and cash equivalents at quarter end of $42.2 million, including $14.1 million in player cash accounts.

• Net cash from operating activities for the quarter was $13.6 million, with receipts from customers totaling $68.5 million.

Financial highlights

• FY24 Group Net Win: $267.1 million (+16% YoY); Q4 Net Win: $68.4 million (+12% YoY); sports betting net win AUD 64.7 million (up 12% PCP); gaming net win AUD 3.8 million (up 4% PCP).

• FY24 gross profit margin was 52.8%, up from 50.2% in FY23.

• FY24 total marketing expense was 21% lower than FY23, at $71.0 million; normalized operating expenses (excluding marketing) were $60.4 million.

• H2 FY24 delivered an unaudited normalized EBITDA profit of AUD 11.5 million, compared to a loss in H1.

• Q4 net cash inflow from operating activities was $11.4 million; record Q4 net cash flow of $7.1 million.

Outlook and guidance

• FY24 normalized EBITDA loss expected to be AUD 1.8 million, an improvement on previous guidance and FY23.

• Company expects continued revenue growth and transition to full-year profitability in FY25.

• Active client growth in Australia and Canada expected to continue into FY25 and beyond.

• New iGaming offering anticipated to accelerate growth and improve gross margins in FY25.

• FY24 results exceeded guidance for net win, gross profit margin, marketing expense, and EBITDA.