The PointsBet Holdings Ltd (ASX: PBH) share price is trading lower with the market on Wednesday following the release of its half year results.
The sports betting company's shares are down 6% to $4.58 at the time of writing.
How did PointsBet perform in the first half?
During the six months ended December 31, PointsBet delivered normalised turnover of $533.1 million and normalised revenue of $27.4 million. This represents a 154% and 127% increase, respectively, over the prior corresponding period.
This growth was driven largely by a significant jump in client numbers following its expansion in the United States. PointsBet reported a 123% jump in active clients to 102,155 and a 194% rise in registered clients to 185,138.
The company posted a normalised EBITDA loss of $28.35 million for the half, compared to an EBITDA loss of $6.6 million in the prior corresponding period. It was a similar story on the bottom line, with the company reporting a loss after tax of $29.35 million for the half. This compares to a loss after tax of $7.3 million a year earlier.
These losses were the result of a significant increase in operating expenses, driven by marketing, employee benefits and information technology costs. This is part of the company's global strategy, which has seen it invest heavily to structure the business for future growth and profitability.
At the end of the period the company had a cash balance of $157.5 million. This includes $9.6 million of client cash.
Management commentary.
Management appears very happy with the progress it is making in the United States.
It said: "As we have previously referenced, the PointsBet Australian business, while a robust and growing business in its own right, is a clear blueprint of the model which will be rolled out in the US. As such, we are very pleased that at the conclusion of our second calendar year of operations with the PointsBetting, Fixed Odds Racing and Fixed Odds Sport product suite, we have achieved year on year growth in all key metrics including Active Clients, Turnover and, importantly, Net Win."
"The Company is pleased with its market access achievements to date and continues to assess future opportunities which will complement the Group's existing operations and market access partners. The Company has appropriately planned for the requirements and demands presented by the US sports wagering opportunity and has been building the global capabilities of the team in preparation for the next phase of the US strategy," it added.
