Sports betting operator PointsBet said that increased spending on expansion efforts in both Australia and the US led to it reporting a net loss of AUD$32.3m (£16.4m/€19.5m/US$21.2m) for the first half of its financial year.
Net revenue for the six months to December 31, 2019 amounted to AUD$27.4m, up from $12.1m in the corresponding period in 2018.
Australia remains PointsBet’s core market, with revenue in the country rising by 105.0% to $24.8m during the period, while turnover was also up by 66.6% to $349.2m.
The operator put these increases partly down to growth in its Australian customer base, with 81,014 registered players by December 31, a 76.8% rise. PointsBet also highlighted its ongoing focus on client retention, as well as the introduction of new products and updates to its offering.
In terms of the US, net revenue for the first half came in at $2.6m, as PointsBet said its New Jersey business progressed from the launch phase to the execution stage. In addition, PointsBet was boosted by launching retail and digital services in the state of Iowa during the half.
PointsBet achieved a gross win margin of 5.0% and net win margin of 1.4% in the US during H1 – its first full half year of trading in the market – off the back of $183.9m in turnover.
The operator noted that its financial performance in the US is only likely to grow further, with the business having agreements in place to launch in a further 11 states, subject to regulatory approvals.
US customer numbers grew from just 35 in the first half of the 2019 fiscal year to 21,141 in the most recent period. Coupled with customers in its native Australia, PointsBet had a total of 102,155 registered players by the end of the half, up by 122.7% year-on-year.
Expansion in both the US and Australia meant PointsBet spent significantly more in H1, with total operating expenses for the period amounting to $41.7m, up by 185.6% on $14.6m in the previous year.
Marketing costs were the main outgoing for the operator in H1, with expenses rocketing by 171.1% to $20.6m. Employee benefit costs were also up 184.9% to $15.4m, while I.T. costs jumped 400.0% to $4.2m. In addition, other expenses climbed 309.1% to $4.2m.
Though PointsBet was able to post a 78.3% year-on-year increase in gross profit to $20.6m, higher spending across the business meant that its loss for the period amounted to $32.3m, compared to a loss of $10.0m in H1 of the previous year.
Publication of the full half results comes after PointsBet last month announced a 169% year-on-year rise in turnover for the second quarter, reporting growth across both its Australian and US businesses.
Coupled with this, PointsBet also announced that it will expand its services into Kansas via an exclusive primary skin agreement with Kansas Crossing Casino. The deal will allow PointsBet to provide retail and online sports wagering in the state, contingent upon obtaining a licence.