PointsBet has confirmed a 16% year-on-year decline in revenue for H1 FY27 financial year, reflecting lower turnover and net win within its core Australian sports betting operations. Total revenue for the six months ending September 30 reached A$112.7 million, down from $134.9 million in the corresponding period of the previous year. Normalised EBITDA dropped from a positive $2.9 million to a loss of $6.9 million, matching figures previewed earlier in the month.
Net win, total stakes received minus winnings paid out, decreased 17% year-on-year to $122.1 million. This comprised $107 million generated from sports betting, representing an 18% decline, and $15.2 million from iGaming, which remained flat compared to $15.3 million previously. Despite the top-line contraction, PointsBet’s global cash active client base expanded 6% to 310,058, bolstered by steady customer acquisition across both Australia and Canada. However, total marketing expenditure climbed 6% to $33.1 million.
Australian sports betting softness and compliance impact
Sports betting in Australia remained the company’s primary revenue generator, though regional revenue fell 19% to $91.8 million. Net win from Australian sports betting declined 18% to $101.2 million, following a 14% drop in handle to $1.03 billion. Interestingly, cash active clients in the country increased 2% to 237,265, indicating that the revenue reduction stemmed from lower spending per user rather than a shrinking customer base.
PointsBet noted that its highest-value customer cohort experienced sustained double-digit declines in both turnover and revenue, directly resulting from proactive compliance measures introduced by the operator. Promotional intensity also added margin pressure, accounting for 27.9% of gross win during the half compared to 24.4% previously, spiking to 32.8% across August and September.
Canadian iGaming stability and platform upgrades
In Canada, combined revenue from iGaming and sports betting operations dipped 6% to $20.9 million, matching a 6% drop in net win to $20.9 million, while cash active clients surged 18% to 72,793. Canadian iGaming net win held steady at $15.2 million on a 10% increase in handle. Conversely, Canadian sports betting faced headwinds as net win fell to $5.7 million and handle dropped 38%, though improved sports betting margins rising from 7.9% to 10.6% helped cushion the impact.
PointsBet attributed the sports betting turnover contraction to churn among a small group of high-staking patrons during the first quarter. The operator has since reinvested in acquisition ahead of major sporting calendars while launching its new Bede casino platform in Canada to enhance content flexibility and player retention. Preparations are also underway for a planned launch in Alberta by 2026, pending final regulatory approvals.
Group profitability and regulatory adjustments
Gross profit for the entire business declined 15% year-on-year to $57.1 million. Australian gross profit fell 17% to $46.9 million, partially offset by a 6% rise in Canadian gross profit to $10.1 million. Operating cost disciplines saw other operating expenses reduced by 6% to $30.8 million.
These results reflect PointsBet’s revised financial calendar, adjusted from a June 30 year-end to March 31 to align with parent company MIXI Australia. Meanwhile, regulatory developments in Ontario saw the Alcohol and Gaming Commission of Ontario (AGCO) reduce a previously proposed website suspension period from five days to two following discussions regarding historical supervisory reviews.
