The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch on Friday following the release of its second quarter update.
How did PointsBet perform in the second quarter?
During the second quarter PointsBet reported quarterly turnover of $297.3 million. This was a 169% increase on the prior corresponding period.
A key driver of this growth was an increase in active and registered clients in both Australia and the United States. Total active clients jumped 123% to 102,155 and total registered clients increased 194% to 185,138.
Also growing strongly were its Gross Win and Net Win. PointsBet's Gross Win climbed 134% to $28.9 million and its Net Win rose 117% to $18 million.
The majority of its Net Win came from the Australian market. However, this may change in the near future after PointsBet achieved its first positive margin quarter for the United States business since launch.
The United States business achieved a Net Win Margin of 3% in the second quarter. This compares to a Net Win Margin of 7.9% in the Australian market.
At the end of the period PointsBet had a cash balance of $157.5 million. This will comfortably cover its estimated cash outflows in the third quarter.
Entry into Kansas.
In addition to its quarterly update, PointsBet revealed that it has entered into an exclusive primary skin agreement with Kansas Crossing Casino. The agreement will see it provide retail and online sports wagering in the State of Kansas. This is contingent upon obtaining the necessary regulatory licenses.
PointsBet CEO Sam Swanell said: "PointsBet is pleased to have reached agreement for both retail and online sportsbook operations with Kansas Crossing. The team behind Kansas Crossing is acclaimed as one of the best operators in US gaming, and we look forward to many years of great success working together in Kansas."
Outlook.
No formal guidance was provided but management appears confident on the future, particularly in the massive U.S. market.
It said: "PointsBet is well-positioned to take advantage of the growing opportunity in the wider US as other States go "live", with strong leadership and experienced management. This has been bolstered by the nomination of Becky Harris, the first ever Chairwoman of the Nevada Gaming Control Board and former Nevada State Senator, to the Board as a Non-Executive Director."
