Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

PointsBet (ASX:PBH) share price rockets 50% on NBCUniversal partnership

The PointsBet Holdings Ltd (ASX: PBH) share price has just opened 52% higher after the betting company announced a major partnership with NBCUniversal.

PointsBet also released its full-year results and unveiled plans to raise capital. The company was on track to release its results next Monday but the partnership with NBCUniversal fast-tracked the timeline.

Transformational partnership

In what PointsBet is calling a ‘transformational’ deal, it has entered into a five-year media partnership with NBCUniversal, the American media and entertainment conglomerate.

As part of the deal, PointsBet will become the official sports betting partner of NBC Sports in the US. This will provide PointsBet access to broadcast assets which span 184 million viewers, the largest sports audience of any US media company, and digital assets which span 60 million monthly users.

Under the media partnership, PointsBet will have exclusive gameday integrations across NBC Sports Regional Networks, be the exclusive partner of the NBC Sports Predictor app, and have premium placement and an agreed pricing structure across NBC Sports’ television and digital assets.

PointsBet said these assets will act as the cornerstone of its marketing strategy. It is committing a total marketing spend of US$393 million, which will be allocated in progressively increasing amounts over the five-year deal.

In terms of consideration, PointsBet has entered into a subscription agreement with NBCUniversal, under which NBC will be issued a 4.9% stake in PointsBet ordinary shares (subject to shareholder approval) and 66.88 million options maturing in five years.

Ordinary shares will have a deemed price of $6.50, while the options will be exercisable at $13 per option. Interestingly, as an alternative to exercising the options, NBC can choose to receive $105.3 million (the value of the options) in cash.

PointsBet said the equity consideration underpins the strategic partnership with NBCUniversal and aligns their interests.

PointsBet’s FY20 results

Here are the headline figures from PointsBet’s full-year report (some of which have already been revealed in previous announcements):

  • Turnover of $1.52 billion, up 103% on the prior year
  • Net win of $82 million, up 191% on the prior year
  • Net revenue up 193% to $75.2 million
  • Normalised EBITDA loss of $37.6 million, compared to a loss of $32.7 million in FY19
  • Statutory loss of $41.5 million, a slight improvement from a $41.9 million loss in FY19

Despite the increase in revenue, PointsBet extended its losses after heavily invested across marketing, employees and technology to support its growth.

Total expenses jumped by 68% to $83.5 million, driven by a near doubling of employee benefits expenses and a 42% increase in marketing spend.

At the end of the FY20, PointsBet had $144.4 million cash sitting on its balance sheet, bolstered by a $122 million capital raising in November 2019, and no debt.

Capital raising

Along with the partnership and full-year results, PointsBet also announced it intends to launch a ~$300 million capital raising after-market on Wednesday, 2 September – at which point shares will enter a trading halt.

PointsBet said the raising will likely be structured as a pro-rata entitlement offer and a placement, with the offer price to be determined at the time of the announcement next week.

The company expects the entitlement offer ratio will be 1 new share for every 6.5 shares held on the record date.

What happens next?

“There remains a once in a lifetime market opportunity in the United States and PointsBet has already taken significant steps towards capitalising on this opportunity,” the company said.

PointsBet didn’t provide much in the way of a trading update but noted it expects to launch retail and online operations in Illinois in the first quarter of FY21, with Colorado and Michigan to follow. The company is also working towards launching an iGaming product.

Keep your eyes peeled for PointsBet’s capital raising announcement next week. In the meantime, grab a copy of the free investment report below.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

Disclosure: At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.