PointsBet has achieved a significant reduction in its net loss for the financial year ending in 2025, driven by increased revenue and decreased expenses. In parallel, MIXI Australia has strengthened its position in pursuit of acquiring PointsBet, with its voting power now exceeding 50%.
In its financial year 2025 results, PointsBet reported a record-breaking revenue of AU$261.4 million (equivalent to US$170.8 million) for the 12 months up to 30 June. This figure marks a 6% increase compared to the previous year, a milestone for the company.
Improvement was noted in PointsBet’s sports betting operations across both Australia and Canada. Most notably, the net win, calculated as revenue minus promotional costs, improved by 6% year-on-year to $283.6 million. This achievement is historic for the company as it also recorded its first-ever positive normalised EBITDA. Excluding share-based payments and one-off items, PointsBet’s normalised EBITDA reached $11.2 million, a significant turnaround from the $1.8 million loss in the prior year. Moreover, active players on a rolling annual basis reached an unprecedented high of 295,757.
In Australia, PointsBet’s sports betting segment remained the primary revenue driver, generating $218.5 million—up 3% from the previous year, setting another record. This growth was realized despite a 14% decrease in player spending. Nonetheless, the net win rose 3% to $240.6 million, and the net win margin increased to 10.4%, marking the sixth consecutive quarter of margin growth.
PointsBet also reiterated its advocacy for gambling advertising reforms in Australia, an issue that remains contentious. Initial reform plans set for 2024 were postponed to 2025, with speculation that the government lacked adequate Senate and sports body support. “PointsBet remains active in encouraging the wagering industry, governments, sports bodies, and media to promptly resolve sustainable and pragmatic advertising reform,” the company noted optimistically, hinting that a resolution seemed more feasible now that the federal election concluded.
In Canada, PointsBet experienced a 26% revenue increase across sports betting and igaming, reaching $42.9 million. Similarly, the total net win rose 26% to $43.0 million for the full year. Revenue from Canadian sports betting alone increased by 6% to $14.8 million, with the handle jumping 39% to $354.9 million. Despite initial challenges with customer-friendly results in H1, the net win grew by 11% to $17.0 million.
The igaming sector saw even more pronounced growth, with revenue rising 41% to $28.1 million following a 27% hike in player spending, totaling $1.14 billion. Despite facing negative VIP variance on slots in the first half, the net win surged 39% to $26.0 million.
Overall, PointsBet successfully reduced its net loss to $18.2 million, a significant improvement from the $42.3 million loss recorded in the previous year. This was primarily due to a 7% increase in the cost of sales being offset by slightly lower operating costs and robust revenue growth, pushing gross profit up 6% to $137.0 million. Finance expenses, including depreciation and amortization, were also curtailed, resulting in a pre-tax loss of $18.0 million compared to the $39.5 million loss in FY24. Minimal income tax of $0.1 million was paid, leading to a final net loss of $18.2 million.
In parallel with PointsBet’s financial disclosures, a significant development unfolded regarding its potential acquisition. MIXI confirmed that its voting power in PointsBet had surpassed the critical 50% threshold, prompting a two-week extension of its offer acceptance period, now scheduled to end on 12 September. This allows more time for shareholders to deliberate the proposal.
Earlier in August, MIXI announced its final bid for PointsBet, offering $1.25 in cash per share, contingent on securing more than 90% of the total holding, which would subsequently increase to $1.30 per share. However, this higher price seems improbable as Betr Entertainment, another contender for PointsBet, rejected the MIXI offer. Despite PointsBet’s encouragement for shareholders to accept MIXI’s proposal and decline Betr’s counteroffers, Betr remains undeterred, returning repeatedly with revised bids. Its latest all-share offer values PointsBet at $1.40 per share. Nonetheless, PointsBet’s immediate response was to advise rejection of Betr’s proposal in favor of MIXI’s terms.
Betr Executive Chairman Matthew Tripp, following PointsBet’s FY25 earnings disclosure, expressed confidence in Betr’s strategic position, stating that their offer presents superior value for both Betr and PointsBet shareholders. Tripp emphasized a disciplined approach while exploring further opportunities for growth acceleration, reflecting Betr’s persistent pursuit of PointsBet despite the ongoing competitive bidding scenario.
The outcome of this corporate tug-of-war remains uncertain, underscoring the significant strategic interests at play. Analysts suggest that while PointsBet’s recovery and progress stand out, the final decision may hinge on which bidder can demonstrate a more lucrative and stable future for PointsBet and its stakeholders.
4.2/5
