Despite Australia considering restrictions on gambling advertisements, gambling operator PointsBet remains optimistic about its business in Australia. The company is confident that such changes will not fundamentally affect its operations.
The country is considering proposals to ban or at least significantly restrict gambling advertisements, with one of the latest proposals stipulating that no more than two gambling ads per hour are allowed before 10 PM.
Meanwhile, activists continue to push for a complete ban on gambling ads, believing it to be the only way to protect Australian youth from the harms of the gambling industry.
Some argue that the ban would damage the free-to-air TV industry, but others claim that restrictions will satisfy no one, as they would still harm the gambling market without achieving the goals of anti-gambling activists.
CEO Swanell states PointsBet is in a favorable position
In a conference call with analysts following the company's recent fourth-quarter earnings release, CEO Sam Swanell believes that with its significant influence in Australia, PointsBet can overcome any setbacks related to advertising.
Swanell is confident that the performance of PointsBet in the fiscal year 2025 will not be affected by any changes in gambling advertising. However, he added that this is based on the assumption that his company continues to spend as usual.
Speaking of spending, Swanell noted that advertising restrictions could even help his company save costs.
PointsBet releases its fiscal year 2024 report
As mentioned above, PointsBet has just released its report for this fiscal year, highlighting a 17% increase in group net revenue to AUD 245.5 million. Additionally, the company reported a normalized EBITDA of AUD 47.2 million, a significant improvement compared to the EBITDA loss of AUD 49 million from the previous year.
The company's marketing expenses for the fiscal year 2024 were AUD 71 million, a 21% decrease year-over-year. On the other hand, operating expenses decreased to AUD 10.3 million.
During the period, PointsBet sold its US assets to Fanatics, allowing it to focus on its core business in Australia. Moreover, the company also returned AUD 442.4 million in capital to its shareholders.
