The PointsBet Holdings Ltd (ASX: PBH) share price has been a positive performer on Friday.
In morning trade the sports betting company's shares jumped as much as 6.5% to $16.49.
The PointsBet share price has since dropped back a touch and is now up 2% to $15.81.
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Why is the PointsBet share price jumping higher?
Investors have been buying PointsBet shares on Friday following the release of a quarterly update which revealed further strong growth across major metrics.
For the three months ending 31 December, PointsBet recorded turnover of $1,198.2 million. This was up a massive 303% on the prior corresponding period.
Strong turnover growth was achieved across both its Australian and US operations. Australian turnover increased 193.9% to $543.3 million and US turnover jumped 482.4% to $654.9 million. This was driven partly by a 106.6% increase in active clients to 211,100. This comprises 143,000 in Australia and 68,100 in the US.
Also growing strongly was the company's gross win, which increased 189.2% to $83.4 million. This growth was driven entirely by its Australian operations, with its US business actually going backwards despite its huge turnover growth.
Australian gross win was up 264.4% to $75.5 million, whereas US gross win fell 2.6% to $7.9 million. This means these businesses were operating with vastly different gross win margins of 13.9% and 1.2%, respectively.
Pleasingly, there has been a huge improvement so far in the third quarter. Between 1 January and 24 January, the US business enjoyed a gross win margin of 15% and the Australian business' gross win margin came in at 12.1%.
Finally, PointsBet's net win for the second quarter was $44.6 million, up 148.1% from the same period last year. And thanks to the aforementioned improvement in its gross win margins in the third quarter, the company's net win was $22.9 million between 1 January and 24 January. This means it has achieved half of its second quarter net win in just three and a half weeks.
Balance sheet
At the end of the period, the company's corporate cash balance stood at $359.1 million with no borrowings.
PointsBet does, however, have a commitment to invest US$393 million into marketing over a five-year period to support its partnership with NBCUniversal.
