Australia's Pointsbet faces worst day in 21 months on earnings forecast cut

PointsBet Holdings

31/01/2025 01:43

By Aaditya GovindRao
       Jan 31 (Reuters) - Shares of Australia's Pointsbet
 PBH.AX  fell more than 19% on Friday and were poised for their
worst day in nearly 21 months, after the sports wagering
platform operator cut its forecasts for fiscal 2025 operating
earnings and revenue.
    The stock dropped as much as 19.4% by 0121 GMT and was set
for its biggest single-day fall since mid-May 2023. It was the
top loser on the S&P/ASX All Ordinaries  .AORD  index, which was
up 0.5%.
    Pointsbet lowered the top end of its full-year operating
earnings forecast range and said it now sees earnings between
A$11 million and A$14 million ($6.83 million-$8.70 million),
down from the A$11 million to A$16 million expected in October.
    The betting company also lowered its revenue forecast range
to A$260 million-A$270 million, from A$280 million-A$290
million.
    For the first half, Pointsbet logged A$18.1 million in net
win - the difference between receipts from losing players and
payouts to winning players - from its Canada business, missing a
consensus estimate of A$23.9 million, according to analysts at
Jarden.
    "Reduction in fiscal 2025 revenue and EBITDA guidance will
be the focus of today's result, however we view most of this
impact as transitory," analysts at Jefferies said.
    They said the downgrade reflects short-term headwinds for
Pointsbet, while its long-term operating earnings view remains
intact, driven by significant growth prospects in Canada and
continued margin improvement in Australia.

($1 = 1.6095 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by
Subhranshu Sahu)
 ((Aaditya.GovindRao@thomsonreuters.com;))