- PointsBet is an Australian sportsbook provider.
- PointsBet was one of the first sportsbook operators to enter the US sports betting market.
- The company believes that it will increase its presence in the near future.
TALLAHASSEE, Fla. – PointsBet’s share price fell on Thursday, despite the fact they company grew in fiscal year (FY) 19.
PointsBet ended up losing around $22 million by the end of FY19. After this was announced, the share price fell by 10.5% in response. Now the current share price is $1.96. This is still a higher share price than what they started at the beginning of FY19. The original share price was $1.34.
But the $22 million loss was due to investments that the company made. PointsBet decided to invest $22 million into the US sports betting market at the end of the fiscal year. Overall, the company has only grown since FY18. PointsBet had an increase from $6.3 million to $17.2 million in revenue. This is a 173-percent increase in revenue. Despite that, investors heard the word loss and reacted poorly.
PointsBet CEO, Sam Swanell, believes that the company will only grow in the future.
“PointsBet is on the starting line of the nascent US sports betting opportunity. It is estimated that if all 50 States legalize online sports betting, the market revenue opportunity will be US$17.3bn per annum,” said Swanell.
“Pending favourable legislation, PointsBet already has market access agreements for ten US states with a combined population of approximately 81 million, with those States representing an estimated sports betting revenue market of US $4.6bn per annum.”
PointsBet is active in a few different states that have active sports betting, such as Iowa. They also have partnerships in states that have not gone live yet as well, such as Colorado. PointsBet aims to increase revenue for FY20 and beyond.
So, although share prices have decreased, PointsBet saw tremendous growth in the last fiscal year. With more states aiming to legalize sports betting, PointsBet is wanting to be a part of that growing market.
Daniel is a writer that enjoys writing to inform readers. When Daniel was writing for The Borgen Project, he liked informing the world about victories in global poverty issues. Daniel is also an avid horse racing fan who has been going to the track with his father for over a decade betting the ponies. When he is not writing about sports betting or at the track, Daniel loves playing video games and watching sports in his spare time.