- Investors drove up the share price of newcomer to sports betting, PointsBet Holdings, as the company began to enter the US market.
- In late 2023 the company sold its US assets, returning the proceeds to shareholders.
- The company maintained its Canadian operations, citing more attractive operating conditions.
With a cloud-based betting and iGaming platform and technology support services, PointsBet Holdings debuted on the ASX in June of 2019 to considerable fanfare over the company’s plan to enter the newly legalised online betting markets in the US.
The share price soared until 2021 when the reality of massive competition in the US and growing marketing and operational expenses to penetrate that market began to creep into the minds of avid investors. Since listing, the share price has dropped 61.2%.
Source: ASX
Year over year the share price is down 47.8%, with a massive drop following the announcement the company had sold its US assets and would be distributing the proceeds to the shareholders.
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Source: ASX
In its first reporting since shedding US assets, the quarterly activities report for Q2 of 2024 had some positive news for investors. The company’s Total Net Win was up 11%, setting a new record, while Net Win for iGaming rose 119%. Net Win represents the dollar value of losing bets collected by the company minus winning bets paid out to customers and client. promotional expenses.
Total Net Win for Australian operations rose 3% — setting another record – and Canadian operations also posted a record quarter for Total Net Win – up 109%.
An analyst at Securities Vault has a BUY recommendation on PointsBet Holdings, with a positive view on the company’s outlook and recent results from the quarterly activities report as well as positive view of PointsBet management.
Marketscreener.com has an analyst consensus rating of OUTPERFORM on PBH shares, with two of the five analysts reporting at BUY, one at OUTPERFORM, and two at HOLD.
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