PointsBet’s sale of its US arm to Fanatics in the final quarter of the fiscal year represented one of the primary drivers behind its stellar performance, allowing the company to focus on its other lucrative markets while unlocking significant value through the sale. Despite the tense acquisition process, the Australian operator emerged stronger than ever, ready to pursue new opportunities.

Most Metrics Remained Positive

The 2023 financial year ending June 30 saw PointsBet record revenues of AU$391.1 million ($260.29 million), marking a 26.4% year-on-year increase. Spots Betting remained the company’s most profitable vertical, contributing AU$335.8 million ($223.48 million) in profits, while iGaming made AU$55.3 million ($36.8 million). These results demonstrate the company’s stable position and growth potential.

Expense metrics were mixed, as the 2.2% cost of sales increase to AU$56.7 million ($37.74 million) offset the 47.6% decrease in quarter-on-quarter marketing costs, which reached AU$36.1 million ($24.03 million). Staff costs dropped 3.7% to AU$25.8 million (17.17 million), contrasting the 26.4% rise in administration, corporate costs, and goods and services tax, totaling AU$24.9 million ($16.57 million).

PointsBet’s US division recorded impressive results, accounting for AU$161.1 million ($107.22 million) in revenue for a stellar 72% year-on-year increase. These results bode well for the upcoming Fanatics acquisition, indicating a robust and growing business that can flourish with proper support and investments.

The Upcoming US Division Sale Is a Sensible Move

Acquiring PointsBet’s US division places Fanatics in the perfect position to challenge existing market leaders. The operator’s substantial development and marketing resources should bolster an already successful business, allowing it to compete with industry giants like  DraftKings and FanDuel. Analysts believe Fanatics can capture a significant market share before the 2023 NFL season.

Despite the US division’s profitability, the sale decision appears to be a sound move for PointsBet. The Australian company doesn’t have the resources to focus on every regional division and would be unable to reach its full potential in the USA. The Fanatics sale significantly streamlines operations and allows PointsBet to invest the extra capital in its core markets, ensuring long-term profitability.

PointsBet’s full-year 2023 results highlight the company’s ability to leverage existing resources and exceed expectations despite rising challenges. The sale of its US division will help it to better adapt to the changing demands of the industry. With a strong financial foundation and a commitment to delivering top-quality betting experiences, PointsBet is in the perfect position to achieve even greater success.

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North American gaming giant BetMGM has published a report on its performance during the first half of 2023. In addition, the company provided an update on its outlook for its full-year performance.

The company, jointly owned by MGM Resorts International and Entain, announced that has finished the first half of the year with a very strong financial performance. As reported by the company, its total net revenue from operations sat at $944 million.

The figure furthermore represents same-state growth of 25% in net revenue from digital operations. Same state CPAs, meanwhile, improved by 8% year-on-year.

In addition to that, BetMGM announced that it has reached the key milestone of positive EBITDA for Q2 2023. However, the company noted that its H1 revenue and EBITDA results are unaudited.

The company added that its optimization and player management efforts continue to yield positive results, improving GGR to NGR conversion. Sports NGR margin, for reference, increased by 300 bps year-on-year.

Digital sports revenue per player, meanwhile, was 65% for players acquired in 2021 or earlier. Speaking of digital sports betting, the annual cohorts of online sportsbooks launched between 2019 and 2022 delivered positive contribution profit during the second quarter of the year.

Earlier, the company announced that it has awarded $75 million in jackpots to numerous customers during the first half of the year.

CEO Greenblatt Praised the Results

Аdam Greenblatt, BetMGM’s chief executive officer, released a statement on the results, sharing his contentment about the company’s “significant progress.” He pointed out that the company remains on its path to profitability as it continues to demonstrate strong growth.

Greenblatt confirmed that the company’s financial guidance for 2023 remains on track, with BetMGM expecting to deliver between $1.8 and $2 billion in full-year revenue. Furthermore, the company hopes to remain EBITDA positive in the second half of the year, maintaining its favorable metrics.

Greenblatt added that BetMGM will continue pursuing sustainability, scalability and returns by continuing to provide consumers with market-leading products. He concluded that he is very excited to see how the company performs in H2 2023.

We look forward to the remainder of the year, buoyed by ongoing product improvements, tremendous support from our shareholders providing access to new assets and partnerships, and – above all – our extraordinary team at BetMGM.

Adam Greenblatt, CEO, BetMGM

In unrelated news, Jamie Foxx recently announced his return from hospitalization and unveiled an upcoming activation with BetMGM.

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Nordic gaming group Paf released its 2022 annual report, posting a record-high turnover and an impressive increase in net profit.

Turnover by Divisions

For the twelve months ended December 31, 2022, Paf Group registered a turnover of €165.7 million ($179 million), posting an increase of 23% from €135 million ($145.8 million) the group accounted for in 2021.

“We are pleased with last year, it is a good result and a testament to our ability to deliver,” commented Paf’s chief executive officer Christer Fahlstedt, highlighting Sweden, Switzerland and Spain as the gaming destinations which stood out, as well as the recovery of the group’s ship operations.

Paf’s internet operations in the year accounted for €142.1 million ($153.5 million), generating 17% more than in 2021 (€121.2 million ($130.9 million)), with particularly strong growth registered across the Swedish and Spanish markets.

The group attributed the turnover increase to the record number of active customers during the year, 483,595, which increased by 44% from 336,206 in 2021, and expects the number of its active customers to continue to grow in 2023.

Turnover from land and ship operations generated €23.5 million ($25.4 million), increasing by more than 70% year-over-year mainly due to a sharp increase in the number of passengers on board the vessels compared to the prior year. Paf believes there is still room for this number to increase and reach the 2019 level and expects the positive trend to continue in 2023.

Other operating income increased by 9%, from €6.8 million ($7.3 million) in 2021 to €10.1 million ($10.9 million) now, mainly due to the increased sales of gambling platforms and associated services.

Expenses, Operating Profit, Net Profit

Costs in 2022 aggregated to €128.3 million ($138.6 million), up 20% from €106.8 million ($115.3 million) in 2021. There were increases in materials and services costs, €39.5 million ($42.7 million), up 30% from €30.3 million ($32.7 million) in 2021, and other operating expenses which were up by more than 25% to €54 million ($58.3 million) from €43.1 million ($46.5 million) in 2021, and staff costs marginally increased while the cost of depreciation remained almost unchanged.

Paf explained the increased costs by an increase in marketing expenses, costs for the cloud-based technology and travel expenses.

Paf Group ended 2022 with an operating profit of €48.5 million ($52.4 million), up 36% from €35.7 million ($38.6 million) in 2021. The net result of financial income and expenses was a loss of €1.6 million ($1.73 million) while in 2021 it was €300,000 ($324,000).

“Paf’s purpose is to generate funds for the benefit of society and with the strong result we can distribute €33.1 million,” said Paf’s chairman Jan-Mikael von Schantz, thanking all employees for their performance over the past year.

Net profit in 2022 was €44.4 million ($48 million), registering an impressive increase of more than 35% from €32.8 million ($35.4 million) in 2021.

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Lottomatica’s results largely mirror the broader trend in the Italian gambling industry, which has seen significant growth in recent years. Rising revenues across the board should fuel the company’s ambitions after it went public on the Borsa Milan Exchange, hopefully surpassing its projected targets. Despite the global financial instability, Lottomatica hopes to ride the expected IPO market recovery and generate additional value.

Going Public Did Not Hamper Momentum

The Italian lottery and gaming operator first announced its IPO ambitions in January. The company targeted an April listing, hoping to reduce its debt and generate additional proceeds from its new shares. Despite the ongoing turmoil following the recent string of bank failures, Lottomatica pressed on with its plans and successfully secured its listing.

Despite a first-day slip in share prices, controlling shareholder Apollo Global Management, an American global private equity firm, was happy with its results, noting that the move would attract new investors and aid future growth. With consistently good financials and strong demand in the Italian gaming market, Lottomatica sets an example for other companies considering a public listing.

Lottomatica Is Poised for Further Growth

Lottomatica’s Q1 results record substantial growth across most metrics. Overall revenue rose 19.4% year-on-year, reaching a record €424.8 million ($461.3 million). Gaming franchise revenue was the most impactful, contributing €188.0 million ($204.2 million). The company’s online segment experienced the most substantial increase, rising by an impressive 39.3% year-on-year for €124.0 million ($134.7 million).

While Lottomatica’s online sports betting vertical contributed the least at €110.0 million ($119.5 million) in revenue, it retained its healthy position, enjoying an 18.1% market share. Despite such impressive performance, rising inflation and interest rates caused expenses to skyrocket, as the operator lost €247.0 million ($268.3 million) for services payments and €38.0 million ($41.3 million) due to depreciation and write-downs of tangible assets.

Additional expenses of €6.9 million ($7.5 million) on other operating costs and €23.8 million ($25.9 million) in income taxes were not enough to offset Lottomatica’s revenue growth, as the company recorded profits of €46.4 million ($50.4 million)- a 33.8% year-on-year increase. Company CEO Gugliemo Angelozzi was content with the results, hoping the company would maintain its momentum for the rest of the year.

I want to express my gratitude to all my colleagues for these extraordinary results achieved thanks to their incredible dedication and commitment. 

Gugliemo Angelozzi, Lottomatica CEO

The success of Lottomatica’s Q1 2023 should bolster the company’s position in the Italian market and position it well to capitalize on future growth opportunities. The operator is doing an admirable job weathering the ongoing worldwide financial instability, consolidating its position in the Italian market, and setting the stage for further growth.

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Gaming Innovation Group (GiG) experienced substantial growth across all primary verticals, smashing last year’s results with a 49% increase in revenue from 2021. The stellar financial results place the company in the perfect position to pursue its long-term strategy and consolidate its presence in its most profitable markets.

Revenues Are Up across the Board

As a leading technology and platform provider for the iGaming industry, GiG has been riding the global online gambling boom, securing many new lucrative partnerships. The company’s ambitious expansion strategy has been paying off, as evidenced by its Q1 financial results. With metrics up across all verticals, GiG is showing no sign of slowing down.

Q1 2021 corporate revenue rose to €28.4 million ($31.2 million), surpassing 2021’s results by 49%. EBITDA growth was especially notable, skyrocketing 75% to €11.7 million ($12.9 million). GiG Media was the group’s most lucrative arm, contributing €18.4 million ($20.2 million). Platform & Sportsbook revenue experienced a record 100% revenue growth of €10.0 million ($11 million).

The impressive performance was possible thanks to several strategic decisions, like January’s successful acquisition of AskGamblers and GiG Media’s expanded partnership with News Corp UK & Ireland. Platform & Sportsbook partnerships across Europe and the Americas continued to pay dividends, showcasing the company’s robust performance and potential for future growth.

The Future Is Looking Bright

With an overall positive cash flow from operations of €13.2 million, GiG is well-positioned to capitalize on new market opportunities across multiple verticals, further extending its global reach. Group CEO Richard Brown was content with the Q1 results, noting that the business still had significant untapped potential.

The first quarter of 2023 had a multitude of successful and impressive steps forward for Gaming Innovation Group.

Richard Brown, GiG CEO

Overall, the group’s 2023 prospects show no sign of decline. March saw GiG secure licenses for Maryland and Pennsylvania, giving it access to two new dynamic and lucrative markets. With B2B at the forefront of the group’s ambitions, its newest Enterprise Solution promises to deliver lasting success in the Software as a Service space.

Recent partnerships with iGaming content developer Apparat Gaming and casino operator Palasino Malta demonstrate GiG’s growth potential, driven by increased demand for its platform services. As the group maintains its focus on customer growth and product development, it will be interesting to see how it performs in the coming quarters.

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Surging economic growth appears to be the theme across many popular Asian gambling destinations, as Macau also recorded a sharp rise in revenue. Its slow recovery after the COVID pandemic allowed other gambling hubs like Korea to flourish, challenging the Chinese territory’s previously undisputed regional monopoly.

The Region Suffered Tremendously during the Pandemic

Korea and Macau’s casino industries closely paralleled each other during the early pandemic, suffering tremendously from the border closings and lack of overseas visitors. Since 17 out of Korea’s 18 casinos only accepted foreigners, travel restrictions nearly destroyed them overnight. Macau fared slightly better, relying on a slow but steady flow of local bettors.

As the world started to recover, the tables began to turn. China’s Zero COVID policy significantly hindered recovery efforts, allowing other gambling destinations across Asia to pick up the slack and attract the influx of foreign bettors seeking to spend their money. Korean casinos happily obliged, fueling the ongoing stellar growth.

Asian Gambling Is on Its Way to a Full Recovery

Paradise Co, South Korea’s premier foreigner-only casino operator, reported triple-digit growth as revenue rose 130% over March 2022 to KRW42.7 billion ($32.5 million). These results continue the positive trend from the start of the year. The first three months of 2023 saw Paradise Co’s revenue soar 152% year-on-year, reaching KRW135.2 billion ($103 million). Table game profits performed even better, growing 252% to KRW1.26 trillion ($960 million).

The positive trend appears to hold across Asia, as Macau also enjoyed a meteoric rise in revenue. March GGR smashed projections soaring nearly 250% above the March 2022 results. Revenue for the first three months of the year hit MOP$34.6 billion ($4.29 billion), representing a 95% year-on-year increase. Packaged tours from China played a substantial role in the recovery, helping the region return to normal business operations.

The Resurgence Offers New Opportunities

Despite the similar resurgence in gaming revenue, South Korea and Macau’s gambling industries have little in common. Korean casinos maintain their focus on attracting foreign visitors and rely heavily on integration with the country’s thriving tourism sector. Meanwhile, over 90% of Macau’s tourists traditionally come from mainland China and Hong Kong, with foreigners viewed as a welcome addition.

While each approach is suited to the country’s strengths, the pandemic showed the value of diversification. Macau is trying to diversify its offerings beyond gambling to become a more family-friendly international destination. However, with other developed markets like Korea offering arguably better tourism experiences, the Chinese territory has to carefully consider where to invest its resources to keep up with the competition.

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Data, technology and broadcast company Genius Sports released today its fourth quarter and full year 2022 financial report, posting an impressive increase in revenue and a significant drop in the group’s net loss.

Quarterly and Full-Year Revenue

Genius Sports generated $105.34 million in revenue in the fourth quarter and $341.03 million in the full year ended December 31, 2022, posting increases across all its divisions both in the quarterly and full-year readings.

Commenting on the results, Mark Locke, co-founder and chief executive officer of Genius Sports, outlined the company’s success in delivering on its forecast in each quarter as a display of its “commitment to executing the financial and strategic plan” set forth at the start of 2022.

We remain relentlessly focused on balancing investment in our highest growth initiatives, while still demonstrating the unique operating leverage of our business model.

Mark Locke, co-founder & CEO, Genius Sports

Mark Locke is convinced that in 2023, the company should be able to capitalize on its global competitive position and “capture the immense opportunity” ahead of it.

Across the divisions, Betting Technology, Content & Services was up 21.5% in the quarter and 18.1% in the full twelve months; Media Technology, Content & Services increased by 50.4% in Q4 and 71.2% in full-year 2022; and, Sports Technology & Services contributed to the total with an increase of 8.6% in Q4 and 31.9% in the year.

Adjusted EBITDA, Net Loss

Adjusted EBITDA in Q4 was $2.66 million, up 121% year-over-year, while for the full year 2022, it was $15.79 million, a nine-fold increase as compared to 2021. Both group revenue and group adjusted EBITDA exceeded Genius Sports’ guidance of $340 million and $15 million, respectively.

Group net loss in Q4 was $127.72 million, up two-and-a-half times from $53.29 million in Q4 2021. For the full year, the group’s net loss fell by 69.4% to $181.64 million ($592.75 million in 2021).

Our expectation of nearly tripling our Group Adj. EBITDA and generating free-cash-flow in the second half of 2023 is the direct result of a cost base that does not need to grow in line with revenues moving forward.

Nick Taylor, CFO, Genius Sports

Based on the 2022 results and current performance, Genius Sports maintained its 2023 revenue and adjusted EBITDA guidance of $391 million and $41 million and expects to generate positive free cash flow in the second half of the year.

“With $159m of total cash on our balance sheet, zero debt financing, and our legacy warrants now removed, our shareholders are well positioned to capture the benefits of profitability and cash flow acceleration,” Taylor concluded.

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