PointsBet has increased its total net win to $59.5 million in Q2 FY24 in Australia. That is a record quarter for the bookmaker and represents a 3% increase compared to the same period last year. The bookmaker said the record quarter was a testament to the betting operator’s promotional efforts and a good mix of cash-active clients.
Improved Promotional Efficiency
The Q2 FY24 report states that promotions efficiency increased compared to the previous calculating period (PCP), with promotions at 32.5% of the company’s Australian gross win compared to 38.2% in the PCP.
Marketing spend was also down in Q2 FY24. PointsBet’s marketing expenses were $13.6 million, which is a significant reduction in marketing spending compared to last year, when the betting operator spent 33% more.
PointsBet’s Australian turnover was $901.6 million in Q2 FY24, a 4% decrease compared to the PCP when the sportsbook’s handle was $938.5 million. At 9.8%, the gross win margin was almost identical to the 10.0% margin reported for the same period last year.
However, the gross win margin is expected to return to the normal average of 12-13% in H2. The company’s Australian gross win was $88.1 million, 6% down compared to the PCP.
PointsBet to Deliver Financial Growth by 2025
Another positive for PointsBet was the improved mix of cash-active clients. The bookmaker reported of 218,288 cash active clients at the end of Q2 FY23, down 7% compared to the end of Q1 FY24.
However, it is important to note that there was an increase in the number of positive net win cash customers and a reduction in the number of negative net win cash active bettors compared to the previous calculating year.
PointsBet expects the number of cash active clients to increase in Q3 and Q4 and predicts that the improved client mix will be maintained until the end of FY24.
It is also evident that there is a change in direction at PointsBet. After agreeing to sell its US business to Fanatics, the betting operator has shifted all focus to the Australian and Canadian markets.
The appointment of the company’s new chief financial officer, Alister Lui, in December is seen as part of the company’s new strategy to deliver financial growth by 2025, with technology powering PointsBet’s progress.
