New Risk • Jun 25
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -AU$26m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Negative equity (-AU$18m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$26m). Currently unprofitable and not forecast to become profitable over next 2 years (AU$428k net loss in 2 years). Reported Earnings • Jun 25
Full year 2026 earnings released: AU$0.10 loss per share (vs AU$0.064 loss in FY 2025) Full year 2026 results: AU$0.10 loss per share (further deteriorated from AU$0.064 loss in FY 2025). Revenue: AU$248.8m (down 3.1% from FY 2025). Net loss: AU$35.5m (loss widened 68% from FY 2025). Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Reported Earnings • May 19
Third quarter 2026 earnings released: AU$0.013 loss per share (vs AU$0.001 loss in 3Q 2025) Third quarter 2026 results: AU$0.013 loss per share (further deteriorated from AU$0.001 loss in 3Q 2025). Revenue: AU$57.3m (down 16% from 3Q 2025). Net loss: AU$4.46m (loss widened AU$3.99m from 3Q 2025). Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Breakeven Date Change • May 01
Forecast breakeven date pushed back to 2028 The analyst covering PointsBet Holdings previously expected the company to break even in 2027. New forecast suggests the company will make a profit of AU$560.0k in 2028. Average annual earnings growth of 76% is required to achieve expected profit on schedule. Breakeven Date Change • Mar 18
Forecast breakeven date pushed back to 2027 The 3 analysts covering PointsBet Holdings previously expected the company to break even in 2026. New consensus forecast suggests the company will make a profit of AU$18.0m in 2027. Average annual earnings growth of 116% is required to achieve expected profit on schedule. Reported Earnings • Mar 01
First half 2026 earnings released: AU$0.064 loss per share (vs AU$0.052 loss in 1H 2025) First half 2026 results: AU$0.064 loss per share (further deteriorated from AU$0.052 loss in 1H 2025). Revenue: AU$129.3m (up 3.9% from 1H 2025). Net loss: AU$22.2m (loss widened 29% from 1H 2025). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 5.3% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. New Risk • Feb 27
New major risk - Negative shareholders equity The company has negative equity. Total equity: -AU$13m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. This is currently the only risk that has been identified for the company. Announcement • Oct 29
PointsBet Holdings Limited, Annual General Meeting, Nov 28, 2025 PointsBet Holdings Limited, Annual General Meeting, Nov 28, 2025. Location: level 19, 181 william street, melbourne victoria 3000 Australia Price Target Changed • Oct 01
Price target increased by 7.8% to AU$1.15 Up from AU$1.07, the current price target is an average from 2 analysts. New target price is 9.5% above last closing price of AU$1.05. The company is forecast to post earnings per share of AU$0.011 next year compared to a net loss per share of AU$0.055 last year. Board Change • Oct 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Non-Executive Director Bill Grounds was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 31
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: AU$0.055 loss per share (improved from AU$0.13 loss in FY 2024). Revenue: AU$261.4m (up 6.5% from FY 2024). Net loss: AU$18.2m (loss narrowed 57% from FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 37%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 49 percentage points per year, which is a significant difference in performance. Announcement • Aug 27
PointsBet Holdings Limited to Report Fiscal Year 2025 Results on Aug 29, 2025 PointsBet Holdings Limited announced that they will report fiscal year 2025 results on Aug 29, 2025 Major Estimate Revision • Jul 31
Consensus EPS estimates fall by 24% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -AU$0.032 to -AU$0.04 per share. Revenue forecast unchanged at AU$260.9m. Hospitality industry in Australia expected to see average net income growth of 74% next year. Consensus price target up from AU$1.07 to AU$1.17. Share price was steady at AU$1.23 over the past week. Recent Insider Transactions Derivative • Jul 08
Co-Founder exercised options to buy AU$228k worth of stock. On the 1st of July, Samuel Swanell exercised options to buy 192k shares at a strike price of around AU$1.18, costing a total of AU$228k. This transaction amounted to 2.3% of their direct individual holding at the time of the trade. Since December 2024, Samuel has owned 8.38m shares directly. Company insiders have collectively bought AU$327k more than they sold, via options and on-market transactions, in the last 12 months. Price Target Changed • Mar 01
Price target increased by 8.9% to AU$1.01 Up from AU$0.93, the current price target is an average from 4 analysts. New target price is 10% below last closing price of AU$1.13. The company is forecast to post a net loss per share of AU$0.032 next year compared to a net loss per share of AU$0.13 last year. Reported Earnings • Feb 28
First half 2025 earnings released: AU$0.052 loss per share (vs AU$0.10 loss in 1H 2024) First half 2025 results: AU$0.052 loss per share (improved from AU$0.10 loss in 1H 2024). Revenue: AU$124.4m (up 5.7% from 1H 2024). Net loss: AU$17.2m (loss narrowed 47% from 1H 2024). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. Announcement • Feb 27
MIXI Australia Pty Ltd agreed to acquire PointsBet Holdings Limited (ASX:PBH) for approximately AUD 370 million MIXI Australia Pty Ltd agreed to acquire PointsBet Holdings Limited (ASX:PBH) for approximately AUD 370 million on February 26, 2025. A cash consideration of AUD 370 million valued at AUD 1.06 per share will be paid by MIXI Australia Pty Ltd. As part of consideration, AUD 370 million is paid towards common equity of PointsBet Holdings Limited. In case of termination of transaction, MIXI Australia Pty Ltd will pay a termination fee of AUD 2.50 million and seller will pay a termination fee of AUD 3.50 million.
The transaction is subject to approval by regulatory board / committee, approval of merger agreement by target board, approval of offer by target shareholders and subject to court approval. The deal has been unanimously approved by the board. The expected completion of the transaction is June 11, 2025 to June 20, 2025.
Flagstaff Partners Pty Ltd acted as financial advisor for PointsBet Holdings Limited. Baker & McKenzie acted as legal advisor for PointsBet Holdings Limited. Computershare Investor Services Pty Limited acted as transfer agent/registrar for PointsBet Holdings Limited. New Risk • Feb 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Feb 20
PointsBet Holdings Limited to Report First Half, 2025 Results on Feb 26, 2025 PointsBet Holdings Limited announced that they will report first half, 2025 results on Feb 26, 2025 Major Estimate Revision • Jan 31
Consensus EPS estimates fall by 38% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from AU$286.8m to AU$281.0m. Losses expected to increase from AU$0.019 per share to AU$0.026. Hospitality industry in Australia expected to see average net income growth of 29% next year. Consensus price target reaffirmed at AU$0.94. Share price fell 9.0% to AU$0.85 over the past week. Announcement • Jan 22
PointsBet Holdings Limited to Report Q2, 2025 Results on Jan 31, 2025 PointsBet Holdings Limited announced that they will report Q2, 2025 results on Jan 31, 2025 Price Target Changed • Jan 21
Price target increased by 9.0% to AU$0.97 Up from AU$0.89, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of AU$0.94. Stock is up 5.6% over the past year. The company is forecast to post a net loss per share of AU$0.019 next year compared to a net loss per share of AU$0.13 last year. Recent Insider Transactions Derivative • Jan 17
Non-Executive Director exercised options to buy AU$329k worth of stock. On the 14th of January, Manjit Singh exercised options to buy 354k shares at a strike price of around AU$0.28, costing a total of AU$99k. This transaction amounted to 45% of their direct individual holding at the time of the trade. Since March 2024, Manjit's direct individual holding has increased from 780.20k shares to 789.20k. Company insiders have collectively bought AU$1.2m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Nov 09
PointsBet Reportedly Could Soon Be the Subject Takeover Bid from Overseas Suitor PointsBet Holdings Limited (ASX:PBH) could soon be the subject of a takeover bid worth more than $300 million from an overseas suitor, sources say. The listed bookmaker is understood to have held talks in recent months with potential merger partners or companies looking to acquire it. Some of the talks are likely to have been informal. Pointsbet shares are up more than 80% since the start of September, and climbed about 6% on November 8, 2024. At least one suitor from Asia is said to have entered serious talks about a potential merger or takeover, which would likely be subject to regulatory approval and Foreign Investment Review Board scrutiny. Pointsbet's market capitalisation reached about $290 million on November 8, 2024. Any takeover offer would likely be at a premium to its current share price, suggesting a bid would be more than $300 million. Major Estimate Revision • Nov 04
Consensus EPS estimates upgraded to AU$0.016 loss The consensus outlook for fiscal year 2025 has been updated. 2025 losses forecast to reduce from -AU$0.02 to -AU$0.016 per share. Revenue forecast steady at AU$286.4m. Hospitality industry in Australia expected to see average net income growth of 27% next year. Consensus price target broadly unchanged at AU$0.87. Share price rose 21% to AU$0.86 over the past week. Major Estimate Revision • Nov 01
Consensus EPS estimates fall by 34% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -AU$0.02 to -AU$0.026 per share. Revenue forecast unchanged at AU$284.9m. Hospitality industry in Australia expected to see average net income growth of 29% next year. Consensus price target up from AU$0.87 to AU$0.92. Share price rose 22% to AU$0.86 over the past week. Announcement • Oct 24
PointsBet Holdings Limited to Report Q1, 2025 Results on Oct 31, 2024 PointsBet Holdings Limited announced that they will report Q1, 2025 results on Oct 31, 2024 Reported Earnings • Aug 22
Full year 2024 earnings: Revenues in line with analyst expectations Full year 2024 results: Revenue: AU$245.5m (up 17% from FY 2023). Net loss: AU$42.3m (loss narrowed 61% from FY 2023). Revenue was in line with analyst estimates. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Hospitality industry in Australia. Announcement • Aug 16
PointsBet Holdings Limited to Report Fiscal Year 2024 Results on Aug 22, 2024 PointsBet Holdings Limited announced that they will report fiscal year 2024 results on Aug 22, 2024 Breakeven Date Change • Jul 31
Forecast breakeven date moved forward to 2025 The 6 analysts covering PointsBet Holdings previously expected the company to break even in 2026. New consensus forecast suggests losses will reduce by 69% to 2024. The company is expected to make a profit of AU$2.48m in 2025. Average annual earnings growth of 115% is required to achieve expected profit on schedule. Breakeven Date Change • Jul 23
Forecast breakeven date moved forward to 2025 The 6 analysts covering PointsBet Holdings previously expected the company to break even in 2026. New consensus forecast suggests losses will reduce by 69% to 2024. The company is expected to make a profit of AU$427.9k in 2025. Average annual earnings growth of 89% is required to achieve expected profit on schedule. Announcement • Jul 08
PointsBet Holdings Limited to Report Q4, 2024 Results on Jul 31, 2024 PointsBet Holdings Limited announced that they will report Q4, 2024 results on Jul 31, 2024 Breakeven Date Change • Jul 03
Forecast breakeven date moved forward to 2025 The 5 analysts covering PointsBet Holdings previously expected the company to break even in 2026. New consensus forecast suggests losses will reduce by 71% to 2024. The company is expected to make a profit of AU$1.06m in 2025. Average annual earnings growth of 87% is required to achieve expected profit on schedule. New Risk • Jun 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$185m). Share price has been volatile over the past 3 months (12% average weekly change). Shareholders have been diluted in the past year (6.1% increase in shares outstanding). Board Change • Jun 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. 1 highly experienced director. Independent Non-Executive Director Bill Grounds was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Breakeven Date Change • May 21
Forecast breakeven date pushed back to 2026 The 6 analysts covering PointsBet Holdings previously expected the company to break even in 2025. New consensus forecast suggests the company will make a profit of AU$25.8m in 2026. Average annual earnings growth of 114% is required to achieve expected profit on schedule. Price Target Changed • May 21
Price target decreased by 9.5% to AU$0.85 Down from AU$0.94, the current price target is an average from 6 analysts. New target price is 71% above last closing price of AU$0.50. Stock is down 68% over the past year. The company is forecast to post a net loss per share of AU$0.10 next year compared to a net loss per share of AU$0.35 last year. New Risk • May 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$148.1m (US$97.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$185m). Shareholders have been diluted in the past year (6.1% increase in shares outstanding). Market cap is less than US$100m (AU$148.1m market cap, or US$97.4m). Price Target Changed • May 05
Price target decreased by 11% to AU$0.94 Down from AU$1.06, the current price target is an average from 6 analysts. New target price is 97% above last closing price of AU$0.48. Stock is down 74% over the past year. The company is forecast to post a net loss per share of AU$0.11 next year compared to a net loss per share of AU$0.35 last year. Breakeven Date Change • Apr 29
Forecast breakeven date moved forward to 2025 The 6 analysts covering PointsBet Holdings previously expected the company to break even in 2026. New consensus forecast suggests losses will reduce by 69% to 2024. The company is expected to make a profit of AU$500.0k in 2025. Average annual earnings growth of 116% is required to achieve expected profit on schedule. Announcement • Apr 10
PointsBet Holdings Limited to Report Q3, 2024 Results on Apr 24, 2024 PointsBet Holdings Limited announced that they will report Q3, 2024 results on Apr 24, 2024 Recent Insider Transactions Derivative • Apr 09
Co-Founder exercised options to buy AU$781k worth of stock. On the 4th of April, Samuel Swanell exercised options to buy 977k shares at a strike price of around AU$0.81, costing a total of AU$791k. This transaction amounted to 17% of their direct individual holding at the time of the trade. Since June 2023, Samuel's direct individual holding has increased from 3.85m shares to 5.67m. Company insiders have collectively bought AU$2.8m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Apr 05
FBG Enterprises Opco, LLC completed the acquisition of PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH). FBG Enterprises Opco, LLC entered into a stock and equity sale agreement to acquire PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) for $150 million on May 14, 2023. As for consideration the purchase price is $150 million on a cash free, debt free basis Transaction is subject to a number of conditions including regulatory approvals and PointsBet shareholders to vote on the Proposed Transaction at a Shareholder Meeting expected to be held in late June 2023. The PointsBet Board unanimously recommends that shareholders vote in favor of the Proposed Transaction at the Shareholder Meeting, in the absence of a Superior Proposal. Following completion of the sale of the US Business, the Company intends to distribute to shareholders the net sale proceeds (after applicable taxes and transaction costs) together with the majority of the Company’s current corporate cash reserves that will be surplus to the needs of the remaining business. PointsBet must pay a fee of $1.5 million if FBG Enterprises Opco, LLC terminates the Sale Agreement because PointsBet’s board or any board member fails to make or changes its recommendation that PointsBet’s shareholders approve the Proposed Transaction. As of June 28, 2023, PointsBet has amended its Stock and Equity Sale Agreement with FBG, increasing cash consideration to $225 million or $75 million higher than originally agreed. The consideration will be paid in two-stages, with $175 million (including the full $75 million increase in headline cash consideration) to be received at the initial completion and $50 million to be received at the subsequent completion, subject to agreed adjustments. As of June 30, 2023, the board and the shareholders of PointsBet Holdings approved the transaction. As of July 28, 2023, PointsBet to approach Shareholders for approval on the the proposed transaction expected timing of the Initial Completion in Early-September 2023 and subsequent completion in March 2024, at the Hybrid Extraordinary General Meeting to held on August 29, 2023. As of August 31, 2023, regulatory approval received.
Moelis & Company LLC and Flagstaff Partners Pty Ltd acted as financial advisors to PointsBet Holdings Limited. Jenner & Block LLP, Lance Sacks, Adrian Lawrence of Baker & McKenzie and Orrick, Herrington & Sutcliffe LLP acted as legal advisors to PointsBet Holdings Limited. Randi Mason, Jessica Lipson, Isaac Grossman, Jeff Laska, Jeff Englander, and Seth Segan of Morrison Cohen LLP acted as legal advisor to FBG Enterprises.
FBG Enterprises Opco, LLC completed the acquisition of PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) on April 3, 2024. Mark Hughes and Aonghus Mulvihill will join the executive leadership team at Fanatics Betting and Gaming from PointsBet USA. In addition, more than 200 PointsBet employees are joining FBG in a variety of roles and the company has taken over the leases of the former PointsBet offices in Denver, CO and Dublin, Ireland. Breakeven Date Change • Feb 27
No longer forecast to breakeven The 5 analysts covering PointsBet Holdings no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of AU$5.04m in 2026. New consensus forecast suggests the company will make a loss of AU$1.41m in 2026. Reported Earnings • Feb 26
First half 2024 earnings released: AU$0.10 loss per share (vs AU$0.58 loss in 1H 2023) First half 2024 results: AU$0.10 loss per share (improved from AU$0.58 loss in 1H 2023). Revenue: AU$117.6m (down 34% from 1H 2023). Net loss: AU$32.7m (loss narrowed 82% from 1H 2023). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Hospitality industry in Australia. Announcement • Feb 13
PointsBet Holdings Limited to Report Q2, 2024 Results on Feb 26, 2024 PointsBet Holdings Limited announced that they will report Q2, 2024 results on Feb 26, 2024 Recent Insider Transactions Derivative • Feb 06
Non-Executive Director exercised options to buy AU$340k worth of stock. On the 30th of January, Manjit Singh exercised options to buy 391k shares at a strike price of around AU$0.67, costing a total of AU$262k. This transaction amounted to 100% of their direct individual holding at the time of the trade. Since March 2023, Manjit's direct individual holding has increased from 363.82k shares to 389.58k. Company insiders have collectively bought AU$2.0m more than they sold, via options and on-market transactions, in the last 12 months. Breakeven Date Change • Feb 02
Forecast to breakeven in 2026 The 5 analysts covering PointsBet Holdings expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 63% per year to 2025. The company is expected to make a profit of AU$9.76m in 2026. Average annual earnings growth of 89% is required to achieve expected profit on schedule. Price Target Changed • Jan 31
Price target increased by 9.2% to AU$0.97 Up from AU$0.89, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of AU$0.94. Stock is down 36% over the past year. The company is forecast to post a net loss per share of AU$0.11 next year compared to a net loss per share of AU$0.35 last year. Announcement • Jan 15
PointsBet Holdings Limited to Report Q2, 2024 Results on Jan 31, 2024 PointsBet Holdings Limited announced that they will report Q2, 2024 results on Jan 31, 2024 Announcement • Nov 29
Pointsbet Holdings Limited Provides Earnings Guidance for the Fiscal Year 2024 PointsBet Holdings Limited provided earnings guidance for the fiscal year 2024. For the year, company expected revenue to grow to 10% to 20%. Announcement • Oct 27
PointsBet Holdings Limited, Annual General Meeting, Nov 28, 2023 PointsBet Holdings Limited, Annual General Meeting, Nov 28, 2023, at 10:00 AUS Eastern Standard Time. Location: Le Ciel 6/13 Cremorne Street, Cremorne, VIC 3121 Cremorne Australia Agenda: To receive and consider the Financial Report, Directors' Report and Auditor's Report for the year ended 30 June 2023; to consider Election of Director William Grounds; to consider Re-election of Director Becky Harris; to consider Re-election of Director Manjit Gombra-Singh; to consider Renewal of Key Employee Equity Plan; to consider Remuneration Report; and to consider other issues. Price Target Changed • Oct 27
Price target decreased by 15% to AU$0.89 Down from AU$1.05, the current price target is an average from 6 analysts. New target price is 20% above last closing price of AU$0.74. Stock is down 62% over the past year. The company is forecast to post a net loss per share of AU$0.11 next year compared to a net loss per share of AU$0.35 last year. New Risk • Oct 26
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: AU$108m Forecast net loss in 3 years: AU$6.0m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (16% average weekly change). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$299m). Currently unprofitable and not forecast to become profitable over next 3 years (AU$6.0m net loss in 3 years). Shareholders have been diluted in the past year (3.2% increase in shares outstanding). Announcement • Oct 17
PointsBet Holdings Limited to Report Q1, 2024 Results on Oct 25, 2023 PointsBet Holdings Limited announced that they will report Q1, 2024 results on Oct 25, 2023 Price Target Changed • Sep 29
Price target decreased by 16% to AU$1.05 Down from AU$1.25, the current price target is an average from 6 analysts. New target price is 33% above last closing price of AU$0.79. Stock is down 58% over the past year. The company is forecast to post a net loss per share of AU$0.11 next year compared to a net loss per share of AU$0.35 last year. New Risk • Sep 23
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -AU$299m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (16% average weekly change). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$299m). Shareholders have been diluted in the past year (3.2% increase in shares outstanding). Breakeven Date Change • Sep 19
Forecast to breakeven in 2026 The 6 analysts covering PointsBet Holdings expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 39% per year to 2025. The company is expected to make a profit of AU$690.9k in 2026. Average annual earnings growth of 67% is required to achieve expected profit on schedule. Price Target Changed • Sep 07
Price target decreased by 15% to AU$1.39 Down from AU$1.63, the current price target is an average from 7 analysts. New target price is 82% above last closing price of AU$0.77. Stock is down 66% over the past year. The company is forecast to post a net loss per share of AU$0.27 next year compared to a net loss per share of AU$0.35 last year. Major Estimate Revision • Sep 06
Consensus revenue estimates decrease by 54%, EPS upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from AU$525.5m to AU$239.3m. EPS estimate increased from -AU$0.556 to -AU$0.222 per share. Hospitality industry in Australia expected to see average net income growth of 88% next year. Consensus price target up from AU$1.63 to AU$1.69. Share price fell 53% to AU$0.74 over the past week. Recent Insider Transactions Derivative • Sep 05
Co-Founder exercised options to buy AU$2.5m worth of stock. On the 4th of September, Samuel Swanell exercised options to buy 2m shares at a strike price of around AU$0.46, costing a total of AU$697k. This transaction amounted to 36% of their direct individual holding at the time of the trade. Since June 2023, Samuel's direct individual holding has decreased from 3.85m shares to 0. Company insiders have collectively bought AU$1.6m more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Sep 05
Co-Founder recently bought AU$511k worth of stock On the 4th of September, Samuel Swanell bought around 300k shares on-market at roughly AU$1.70 per share. This transaction amounted to 5.6% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Samuel's only on-market trade for the last 12 months. Reported Earnings • Aug 31
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: AU$0.35 loss per share (improved from AU$1.05 loss in FY 2022). Revenue: AU$210.3m (down 29% from FY 2022). Net loss: AU$107.9m (loss narrowed 60% from FY 2022). Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) also missed analyst estimates by 7.6%. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has fallen by 51% per year, which means it is performing significantly worse than earnings. Breakeven Date Change • Aug 31
No longer forecast to breakeven The 7 analysts covering PointsBet Holdings no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of AU$208.0m in 2026. New consensus forecast suggests the company will make a loss of AU$103.1m in 2026. Announcement • Jul 29
PointsBet Holdings Limited, Annual General Meeting, Aug 29, 2023 PointsBet Holdings Limited, Annual General Meeting, Aug 29, 2023, at 10:00 AUS Eastern Standard Time. Location: Baker McKenzie, Level 19, 181 William St Melbourne Victoria Australia Agenda: To approve Return of Capital; and to approve Benefits to Specific Employees on Transfer of Undertaking or Property of the Company. Announcement • Jul 18
PointsBet Holdings Limited to Report Q4, 2023 Results on Jul 28, 2023 PointsBet Holdings Limited announced that they will report Q4, 2023 results on Jul 28, 2023 Announcement • Jun 17
DraftKings Inc. (NasdaqGS:DKNG) submitted a bid to acquire PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) for $195 million. DraftKings Inc. (NasdaqGS:DKNG) submitted a bid to acquire PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) for $195 million on June 15, 2023. The transaction is on a debt-free and cash-free basis. The Proposed Transaction will not be subject to any financing condition, as DraftKings would complete the Proposed Transaction using cash from its balance sheet. DraftKings expects that customary regulatory approvals, including the approval of gaming regulators in relevant U.S. jurisdictions, will be required in connection with the Proposed Transaction. DraftKings’ entry into definitive agreements will be subject to the satisfactory completion of our reasonable due diligence, the negotiation of mutually acceptable transaction documentation and final internal approvals. Subject to the outcome of the review being undertaken of the DraftKings Proposal, the Board continues to recommend that Shareholders vote in favour of the FBG Transaction. Due diligence could be completed and definitive agreements executed in approximately three weeks. BofA Securities and The Raine Group acted as financial advisor to DraftKings. Sullivan & Cromwell LLP acted as legal advisor to DraftKings. Price Target Changed • May 17
Price target decreased by 7.1% to AU$1.48 Down from AU$1.60, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of AU$1.44. Stock is down 42% over the past year. The company is forecast to post a net loss per share of AU$0.84 next year compared to a net loss per share of AU$1.05 last year. Announcement • May 16
Fanatics, Inc. entered into a stock and equity sale agreement to acquire PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) for $150 million Fanatics, Inc. entered into a stock and equity sale agreement to acquire PointsBet USA Inc. from PointsBet Holdings Limited (ASX:PBH) for $150 million on May 14, 2023. As for consideration the purchase price is $150 million on a cash free, debt free basis Transaction is subject to a number of conditions including regulatory approvals and PointsBet shareholders to vote on the Proposed Transaction at a Shareholder Meeting expected to be held in late June 2023. The PointsBet Board unanimously recommends that shareholders vote in favour of the Proposed Transaction at the Shareholder Meeting, in the absence of a Superior Proposal. Following completion of the sale of the US Business, the Company intends to distribute to shareholders the net sale proceeds (after applicable taxes and transaction costs) together with the majority of the Company’s current corporate cash reserves that will be surplus to the needs of the remaining business.Moelis & Company LLC and Flagstaff Partners Pty Ltd acted as financial advisors to PointsBet Holdings Limited. Jenner & Block LLP, Baker & McKenzie and Orrick, Herrington & Sutcliffe LLP acted as legal advisors to PointsBet Holdings Limited. Price Target Changed • Mar 01
Price target decreased by 11% to AU$1.69 Down from AU$1.90, the current price target is an average from 8 analysts. New target price is 18% above last closing price of AU$1.44. Stock is down 61% over the past year. The company is forecast to post a net loss per share of AU$0.83 next year compared to a net loss per share of AU$1.05 last year. Reported Earnings • Feb 28
First half 2023 earnings released: AU$0.58 loss per share (vs AU$0.59 loss in 1H 2022) First half 2023 results: AU$0.58 loss per share. Revenue: AU$178.1m (up 28% from 1H 2022). Net loss: AU$178.2m (loss widened 22% from 1H 2022). Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Hospitality industry in Australia. Recent Insider Transactions Derivative • Feb 01
Non-Executive Director exercised options to buy AU$206k worth of stock. On the 30th of January, Manjit Singh exercised options to buy 141k shares at a strike price of around AU$1.67, costing a total of AU$235k. This transaction amounted to 63% of their direct individual holding at the time of the trade. Since June 2022, Manjit's direct individual holding has increased from 205.00k shares to 222.97k. Company insiders have collectively bought AU$641k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Jan 02
PointsBet Holdings Limited Unveils its Mobile App and Digital Sports Betting Product in the State of Ohio PointsBet Holdings Limited announced the company has officially unveiled its mobile app and digital sports betting product in the state of Ohio. Ohio marks the 14th operational state for PointsBet's premium sports betting product, following successful launches in New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia, Virginia, New York, Pennsylvania, Kansas, Louisiana, and most recently Maryland. As part of its OddsFactory proprietary technology integration, PointsBet brings fans closer to the action with hundreds of live betting options across all sports. Currently, PointsBet offers LIGHTNING BETS™ for NFL, NBA, NCAAB, MLB, and soccer. PointsBet is the only operator in the market to offer Name A Bet, Live Same Game Parlays, and Pointsbetting. Name a Bet allows bettors to suggest their own market to PointsBet traders for pricing. Live Same Game Parlays enables bettors to create same game parlays once a contest has started. Pointsbetting ups the excitement level of a bet with potential winnings or losses changing until the very end of the game. Starting on launch day, Ohio customers will be able to take advantage of PointsBet's Daily Power Hour from 1:00 – 2:00 pm EST, featuring special promotions ranging from bet credits to odds boosts. Announcement • Dec 29
PointsBet Confirms Talks Involving Sale of Its Australian Trading Business with NTD PointsBet Holdings Limited (ASX:PBH) has confirmed that its in talks with Betr operator NTD PTY Limited regarding a possible sale of its Australian trading business, estimated at AUD 250 million ($168.5 million). The company confirmed the speculation in a release on December 28, 2022, noting that ‘any potential transaction will be assessed in the context of PointsBet’s global strategy and opportunities’. The company also clarified that talks were ‘incomplete and preliminary in nature’ and that ‘there is no certainty that these discussions will result in any binding transaction’. If confirmed, the sale could push NTD’s move into the United States market, after PointsBet upped its marketing campaign in the region by contracting former NBA star Shaquille O’Neal for its advertising campaigns. Announcement • Dec 19
PointsBet Holdings Limited Announces Appointment of William Grounds as Director PointsBet Holdings Limited announced appointment of William Grounds as Director. Date of appointment is 13 December 2022. Announcement • Nov 24
PointsBet Holdings Limited Announces Officially Unveile Its Market-Leading Mobile App and Digital Sports Betting Product in the State of Maryland PointsBet Holdings Limited announced the company has officially unveiled its market-leading mobile app and digital sports betting product in the state of Maryland. Maryland marks the 13th operational state for the company's premium sports betting product, following successful launches in New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia, Virginia, New York, Pennsylvania, Kansas, and most recently Louisiana. The launch of the PointsBet comes just in time for the 2022 World Cup, which is the first since sports betting has become a mainstream fixture in the US. PointsBet users will have the opportunity to tap into new unveiled Soccer Lightning Bets, which include Free Kick Awarded, Goal Scored,Goal Kick Awarded, Shots On Target, and much more. Users will also have the ability to build a Same Game Parlay pre-match or live to maximize their live betting experience. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Kosha Gada was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Oct 12
Pointsbet Unveils First-Of-Its-Kind Content Functionality Within Sportsbook App PointsBet announced a first-of-its-kind content experience on its app. In addition to live streaming, the platform will now feature clips directly focused on betting events, along with access to individual custom-curated feeds and PointsBet+, the company's new content hub. PointsBet will use its new shows, such as The Straight Line with Ryan Leaf, to create content for the app relative to the day's sporting events. The shows will be produced to create 20-25 video-on-demand clips that speak to individual markets, including spread wagers, Same Game Parlays, and player props. Those clips will be native within the product to provide users with news, insights, and analysis to inform their betting options. The platform will be updated daily with refreshed content tailored to individual betting types. PointsBet's new content hub will bring information for core markets, player and game props, as well as its proprietary bet type Points Betting. The content will be curated based on the sporting events occurring that day and will be featured on specific betting pages. Price Target Changed • Oct 03
Price target decreased to AU$3.33 Down from AU$3.81, the current price target is an average from 8 analysts. New target price is 85% above last closing price of AU$1.80. Stock is down 82% over the past year. The company is forecast to post a net loss per share of AU$0.82 next year compared to a net loss per share of AU$1.05 last year. Announcement • Sep 24
Pointsbet Holdings Limited's Subsidiary, Pointsbet Louisiana, LLC Receives Launch Authorization from the Louisiana Gaming Control Board PointsBet Holdings Limited announced that its wholly owned subsidiary, PointsBet Louisiana, LLC has received launch authorisation from the Louisiana Gaming Control Board and has taken its first bet in the State of Louisiana. The launch in Louisiana marks the 4th state launch under the partnership with Penn National Gaming announced on 1 August 2019 (and extended on 26 March 2021) and represents the Company's 12th online sportsbook operation in the United States, following successful launches in New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia, Virginia, New York, Pennsylvania and Kansas. Price Target Changed • Sep 06
Price target decreased to AU$3.81 Down from AU$4.15, the current price target is an average from 9 analysts. New target price is 70% above last closing price of AU$2.24. Stock is down 79% over the past year. The company is forecast to post a net loss per share of AU$0.82 next year compared to a net loss per share of AU$1.05 last year. Reported Earnings • Sep 01
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: AU$1.05 loss per share (down from AU$0.97 loss in FY 2021). Revenue: AU$296.5m (up 52% from FY 2021). Net loss: AU$267.7m (loss widened 43% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 28%. Over the next year, revenue is forecast to grow 58%, compared to a 28% growth forecast for the Hospitality industry in Australia. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. 