The Pointsbet Holdings Ltd (ASX: PBH) share price is up more than 5% after releasing its FY21 third quarter update.
Why investors are betting on the Pointsbet share price
Pointsbet reported that its total turnover increased by 236% to $905.2 million, with US turnover surging 431% to $482 million.
The gross win went up 27% to $100.5 million, with the US win going up 715% to $45.8 million. The gross win margin improved by 1.1 percentage point from 10% to 11.1%. The US win margin particularly improved, with an increase of 3.3 percentage points to 9.5%.
The net win jumped 246% to $64.9 million, with the US win surging 716% to $26.7 million. The total net win margin improved by 0.2 percentage points to 7.2%, with the US net win margin improving by 1.9 percentage points to 5.5%.
Pointsbet’s number of active clients went up 169% to 285,500. Australian clients rose 90% to 158,000 and US clients went up 461% to 127,500.
The gambling business said that it’s now operational in New Jersey, Iowa, Indiana, Illinois, Colorado and Michigan. Michigan is where Pointsbet’s iGaming product will be launched very soon, whilst New Jersey will get it in June.
Pointsbet has been busy, winning and signing a number of partnerships. Pointsbet, NBC Sports and the PGA Tour announced the first-ever betting companion show during a PGA Tour event. It has signed Shaquille O’Neal as an Australian brand ambassador. Paige Spiranac has been signed as a global brand ambassador. It has also signed a partnership with the National Hockey League. Pointsbet then signed a deal with Penn National Gaming to provide online sports betting and iGaming market access in Pennsylvania and Mississippi.
It has been an action-packed quarter.
Net operating cash outflows for the quarter was $27.4 million. Excluding movement in player cash accounts, net cash outflows was $26.8 million.
Final thoughts about the Pointsbet share price
Pointsbet has a very good future in the US and it’s capturing a lot of new clients.
It’s certainly one to watch, although it actually has a lot of growth already priced in, so it’ll be interesting to see how much profit it can generate in the future.
If it can continue expanding into other US states, then it is definitely one to watch along with other exciting ASX growth shares.
