Taking A Bet On PointsBet: PBH Analysis 2021

Pointsbet shares have gained massively from the widespread legalization of betting in the USA. With shares already up over 100% in the past year, we think this is just the beginning. Here’s why we are taking a massive bet on pointsbet. 

PointsBet Shares Price

PBH shares are now up 119.67% over the last 12-months, more than doubling investor’s money!

Since going public in June at a share price of just $2 their share price has returned 510% to today’s price of $12.20.

We can see that PBH ASX did experience a drop during the ‘COVID Crash’. From trough to peak there was a gain of 1660% to be made.

Their 52-week range is 4.97-18.13, their current market cap is $2.47 Billion.

What Is PointsBet?

PointsBet is an ASX-listed sports wagering operator and iGaming provider, offering sports and racing betting products and services direct to Clients via its scalable cloud-based technology platform.

Founded in 2015, PointsBet has grown rapidly since launching its innovative sports betting product, PointsBetting, in Australia in February 2017.

PBH recently appointed Shaquille O’Neal as Australian Brand Ambassador

Their Australian customer base is currently larger with turnovers of $1billion during 1H21, compared to US turnovers of $800M. Although active clients in the US are up 222%.

Stealing Market Share

PointsBet has the ambitious goal of achieving a 10% online market share in every state that it enters. It plans on disrupting 18 US states by the end of 2022. PointsBet is now operational in six US states and continues.

The US sports wagering and iGaming market opportunity for PBH over the term of the NBC Universal partnership to 2025 is predicted to be worth at least US$12.1 billion of annual revenue.

If these numbers hold true we could expect to see a 1412.5% increase in US revenue alone over the next 4 years.

Fundamentals

They have an EPS of -$0.516, currently making a loss.

PointsBet’s share price is backed by $2.16 in net assets. They have a low-debt of $73.335 Million which is well covered by cash.

Financials And Growth

Net revenue has increased 193.75% between the 2019 and 2020 results. From this data, PBH ASX brought in 75.2 million in revenue. After accounting for overhead company costs, with advertisement and employee expenses being the largest, the company realized a loss in EBITDA of -37.6 million.

Australia

The Australian business has realized record turnovers and wins. As a result, the Australian segment realized its first half-yearly results with positive cash flow. They boasted an EBITDA of $8 Million.

• Turnover: $1.71 Billion (up 207%)
• Net Win: $84.8 Milllion (up 211%)

US

US turnover reaches record heights of $819.1 Million. This segment is still loss-making with an EBITDA of -$69.2 Million.

• Turnover: $819.1 Million (up 345%)
• Net Win: -$2 Million

PointsBet X NBC

On 28 August 2020, PointsBet and NBCUniversal Media, LLC entered into a five-year media partnership. Under the partnership, PointsBet has become the Official Sports Betting Partner of NBC Sports gaining access to over 184 million viewers. This is the largest sports audience of any US media company.

Under the terms PointsBet receives the following benefits:

• Exclusive gameday integrations across NBC Sports Regional Networks
• Exclusive partner of NBC Sports Predictor app, (NBC Sports’ free-to-play games platform)
• First look rights to sports betting partnership opportunities across new NBC Sports properties, platforms and products
• Premium placement and agreed pricing structure across NBC Sports television and digital assets

The price:

NBCUniversal has a significant equity subscription with a 4.9% shareholding in the Company and 66.88 million options maturing in five years. ‘

PointsBet’s has also committed a marketing spend of US$393 million over the 5-year media partnership.

Prophet’s Take

Pointsbet’s massive US and Australian growth has been unrivaled and is set for further heights. Even at the current results revenues have reached heights, up 96%, this is before even accounting for the final quarter. It goes without saying their full-year reports next month will be a home run.

We see massive opportunities for growth for Pointsbet in the upcoming full-year report due next month. We are expecting strong results over the next five years. Because of this, we are taking a position in PointsBet over the coming weeks. Here’s our portfolio

We are extremely BULLISH on pointsbet.

Full PBH Analysis: https://prophet-invest.com/taking-a-bet-on-pointsbet-pbh-analysis