PointsBet shifts towards even split between racing and sports

Bookmaker PointsBet has recorded a normalised EBITDA loss of $3.3 million across its Australian and Canadian businesses, with its Australian business continuing its shift towards a 50/50 split between sport and racing.

The publicly listed company, now 66.4 per cent owned by Japanese company MIXI, reported net revenue of $129.3 million, up four per cent, while overall gross profit was $64.2 million, a decline of 1 per cent on the prior corresponding period.

PointsBet said in its report that racing turnover was actively managed lower, reflecting “the continued strengthening of compliance standards” as well as the impact of BetStop on high staking, high volume racing customers.

It also said customer friendly results across the spring carnival had seen net win margin fall below the targeted 10 per cent for the Australian business.

Sports revenue grew in Australia, but gross profit fell six per cent to $52.3 million, something it attributed to higher point of consumption tax costs and increased product fees under the new AFL product fee arrangement.

PointsBet reported it paid $56.2 million in GST, point of consumption taxes and product fees to Australian governments, racing bodies and sports bodies

PointsBet, which reconstituted its board during the period to reflect MIXI’s majority ownership, saw its shares remain steady at 88 cents on Thursday.

“A positive and professional working relationship has been established with MIXI, operating in accordance with agreed independence and governance protocols that support PointsBet’s strategic priorities and long-term growth objectives,” it said.