PointsBet share price lower despite announcing LaLiga deal

The PointsBet Holdings Ltd (ASX:PBH) share price is on watch after being appointed as the official betting partner of LaLiga North America.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The PointsBet Holdings Ltd (ASX: PBH) share price will be on watch this morning after the online bookmaker announced it had been appointed as the official betting partner of LaLiga North America. Despite the news, the PointsBet share price opened 3.9% lower at $3.20.

Details of the LaLiga deal

Under this new agreement awarded to PointsBet's wholly-owned subsidiary, PointsBet USA, the company has been appointed as LaLiga North America's official betting partner.

Through this new deal, the online bookmaker will gain exposure to LaLiga's large and fast-growing audience across North America. The deal is exclusive and has been put in place for several years.

The new deal will enable PointsBet to work with the governing body on industry practices in order to maintain the integrity of LaLiga games.

PointsBet's strategy in relation to the deal will be to incorporate multilingual content across LaLiga North America's portfolio of programming properties. This strategy includes the creation of a new product named "PointsBet Prediction of the Week". This new product will be marketed to targeted audiences in both English and Spanish across the LaLiga network.

Recent Indiana announcement

Just last week, PointsBet announced it had launched operations in the State of Indiana after receiving Mobile Sports Wagering Launch Authorisation from the Indiana Gaming Commission.

The approval was awarded to PointBet's wholly-owned subsidiary, PointsBet Indiana. The Indiana market represents the company's third digital sportsbook operation in the United States.

The online bookmaker now believes it will be in a good position to effectively compete and raise its market share in Indiana.

Recap of recent financial results

In its first-half FY20 results, PointsBet delivered normalised turnover of $533.1 million, which represented very strong growth of 154% over the prior corresponding period (pcp).

Revenue also grew very strongly by 127% to $27.4 million. This growth was driven largely by a sharp rise in client numbers following PointsBet's expansion in the United States. At the end of the period, the company had a cash balance of $157.5 million.

However, the company posted a normalised earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $28.35 million for the half. This was due to a significant increase in operating expenses, driven by marketing, employee benefits and information technology costs. The company's global strategy has seen it invest heavily to position the business for future growth and profitability.

Should you invest $1,000 in S&P/ASX 200 right now?

Before you buy S&P/ASX 200 shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and S&P/ASX 200 wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A stressed businessman in a suit shirt and trousers sits next to his briefcase with his head in his hands while the ASX boards behind him show BNPL shares crashing
Share Market News

5 things to watch on the ASX 200 on Friday

It looks set to be a tough finish to the week for Aussie investors.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Which ASX sectors led the pack in March, according to Macquarie?

It was a volatile month for ASX 200 shares...

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX was rocked by 'Liberation Day' this Thursday.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Superannuation

AustralianSuper sticks with US stocks despite recent turmoil

AustralianSuper’s head of international equities says they won't be shifting focus to Europe.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Opinions

2 compelling ASX shares I'd buy now following the tariff stock market pain

These investments could make excellent buys in the current market sell-off.

Read more »

Child drinking milk out of a glass.
Share Gainers

Guess which ASX All Ords share just rocketed 12% in today's crashing market?

This ASX All Ords share is surging today despite the Trump tariff market turmoil. But why?

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Astral, Newmont, Ramelius, and Synlait shares are defying the market selloff and rising

These shares are rising despite the market weakness today. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ANZ, Breville, Cettire, and Treasury Wine shares are dropping today

These shares are having a tough time on Thursday. But why?

Read more »