{"id":1540,"date":"2021-10-28T11:52:11","date_gmt":"2021-10-28T18:52:11","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=1540"},"modified":"2021-11-01T11:19:56","modified_gmt":"2021-11-01T18:19:56","slug":"pointsbet-feels-the-squeeze","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/pointsbet-feels-the-squeeze\/","title":{"rendered":"PointsBet feels the squeeze"},"content":{"rendered":"<h4>The top line<\/h4>\n<ul>\n<li>Net win rose 82% YoY to A$69.5m ($52.2m) with sports-betting up 76% to $67.3m and igaming contributing A$2.2m.<\/li>\n<li>Australian net win rose 56% YoY to A$54.8m while the US more than trebled to A$14.7m.<\/li>\n<li>PointsBet is live in seven US states with launch plans in 11 more in the next 14 months<\/li>\n<\/ul>\n<p><strong>Taking a dive:<\/strong> Shareholders reacted badly to the evident struggles PointsBet is having in the US retaining market share with its shares tumbling over 18% at close. Of the six states operational in the fourth quarter, all saw market share declines in Q1 with the share of GGR in New Jersey halving to 3.9%. Asked whether PointsBet should temper 10% market share ambitions and settle on aiming for 5%, CEO Sam Swanell was sanguine:<\/p>\n<blockquote><p><em>\u201cIf you are talking about a $50bn market in time, obviously it is very clear you could have a thriving very strong business at 5% of that market,\u201d Swanell said on the call.<\/em><\/p><\/blockquote>\n<p><strong>Learning lessons: <\/strong>Swanell suggested the marketing battle that took place around the start of the NFL season and into the NBA opening had been \u201cinformative\u201d. However, he admitted to a large percentage of wastage in the referrals it gains from its tie-up with NBC and its predictor games. That has currently generated 516,000 referrals but they are across the entire country. Hoping to avoid a marketing \u201carms race\u201d, Swanell insisted the company would \u201cfocus on our product,\u201d including same-game parlays, in-play and igaming.<\/p>\n<p><strong>Arms control:<\/strong> Deutsche Bank analysts pointed out that net sports-betting revenues of $9.2m (up 307% YoY) were augmented by higher hold and lower promotions as a percentage of GGR (down to an implied 57% in Q121 from 68% in Q320). But promo spend was still up 150% YoY to 4.8% of handle vs. 4.1% in Q320 and Pointsbet also spent $27.9m on external marketing.<\/p>\n<h3>Check out these additional articles at Earnings + More:<\/h3>\n<ul>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/28-oct-pointsbet-feels-the-squeeze\" target=\"_blank\" rel=\"noopener\">Evolution Q3<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/28-oct-pointsbet-feels-the-squeeze\" target=\"_blank\" rel=\"noopener\">Churchill Downs Q3<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/28-oct-pointsbet-feels-the-squeeze\" target=\"_blank\" rel=\"noopener\">Scientific Games lottery sale<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/28-oct-pointsbet-feels-the-squeeze\" target=\"_blank\" rel=\"noopener\">Nevada data &#8211; September 2021<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The top line Net win rose 82% YoY to A$69.5m ($52.2m) with sports-betting up 76% to $67.3m and igaming contributing A$2.2m. Australian net win rose 56% YoY to A$54.8m while the US more than trebled to A$14.7m. PointsBet is live in seven US states with launch plans in 11 more in the next 14 months [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[324],"tags":[594],"class_list":["post-1540","post","type-post","status-publish","format-standard","hentry","category-news","tag-pointsbet"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=1540"}],"version-history":[{"count":3,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1540\/revisions"}],"predecessor-version":[{"id":1569,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1540\/revisions\/1569"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=1540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=1540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=1540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}