PointsBet Holdings (PBH) - Winning streak
November 21, 2024
PointsBet Holdings provides sports, racing, and iGaming betting products and gaming support services through its cloud-based technology platform. The company operates through Australian and Canadian businesses, and a technology division.
The company’s recent Sep-24 quarterly trading update was highlighted by healthy net win margins, especially in the Australian business, which reached 10.2%. Gross profit margin for the Aussie business was a robust52.4%, underpinned by a combination of product mix shift to sports and more efficient promotional spending, and despite the headwind of higher point-of-consumption(POC) taxes in effect since 1 July.
The Canadian business also performed well, with strong growth in both sports wagering and iGaming net win metrics, which jumped 77%and 50%, respectively.
Pleasingly, the company has reiterated its FY25 guidance, and we now forecast FY25 operating earnings (EBITDA) of $14.8 million, which is towards the upper end of management’s guidance. We retain our Buy rating, while our target price rises to $0.95 from $0.85.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
Collins Foods (CFK) – Margins over sales
Collins Foods operates KFC stores in Australia and Europe.
Treasury Wine Estates (TWE) – Sour note
Treasury Wine Estates is a vintner that supplies its products globally but principally to Australia, the US, the UK and China.
Aurizon Holdings (AZJ) – Earnings railroaded
Aurizon Holdings is a rail freight and logistics operator in Australia hauling mining, agricultural, industrial, and retail products.
.jpg)