PointsBet reduces net loss in FY25, MIXI edges closer to takeover

PointsBet has posted a reduction in net loss for its 2025 financial year, following a rise in revenue and decrease in expenses. Meanwhile MIXI Australia has taken a step closer to taking over the operator, increasing its voting power past the 50% threshold.

Publishing its FY25 results, PointsBet said revenue for the 12 months to 30 June amounted to AU$261.4 million (US$170.8 million). This represents a new record, surpassing the previous financial year by 6%.

Revenue was higher across the group’s sports betting operations in Australia and Canada. On top of this, net win – revenue minus promotional costs – improved by 6% year-on-year to $283.6 million.

First EBITDA-positive period in PointsBet history

PointsBet also posted positive normalised EBITDA for the first time in its history. Normalised EBITDA in FY25 – excluding share-based payments and one-off items – reached $11.2 million, in contrast to a $1.8 million loss in the previous year. In addition, rolling annual cash active players hit an all-time high of 295,757.

Australia growth despite reduced player spend in FY25

Breaking down PointsBet’s performance in FY25, sports betting operations in its native Australia again made up the majority of revenue. In total, revenue in the country topped $218.5 million, a rise of 3% and another new record.

The increase came despite a 14% year-on-year decline in overall player spend during the year. However, net win improved 3% to $240.6 million, with net win margin rising to 10.4%. The group has now reported six consecutive quarters of net win margin growth.

Also on Australia, PointsBet again voiced its support for gambling advertising reform in the country. The issue remains up for debate. Reforms were due to be implemented in 2024, before they were delayed to 2025 amid rumours the government did not have enough support in the Senate or from sports governing bodies.

“PointsBet remains active in encouraging the wagering industry, governments, sports bodies and media to promptly resolve sustainable and pragmatic advertising reform,” it said. “This is likely now that the federal election has been resolved.”

Turning to Canada, where revenue across sports betting and iGaming increased by 26% to $42.9 million. Total net win also climbed 26% to $43 million for the full year.

Revenue from sports betting in Canada edged up 6% to $14.8 million, with handle rising 39% to $354.9 million. Net win was 11% higher at $17 million despite what PointsBet said were “unprecedented” customer-friendly results in H1.

As for iGaming, revenue climbed 41% to $28.1 million, amid a 27% rise in player spending to $1.14 billion. Net win also increased by 39% to $26 million despite negative VIP variance on slots during the first half.

Net loss down to $18.2 million at PointsBet

In terms of spending, cost of sales increased 7%, but operating costs were marginally lower for the year. Coupled with revenue growth, this allowed gross profit to climb 6% to $137 million.

Finance expenses, including depreciation and amortisation, were also reduced. As such, PointsBet posted a pre-tax loss of $18 million, compared to $39.5 million in FY24.

The group paid just $0.1 million in income tax, meaning it ended the financial year with a net loss of $18.2 million, an improvement on last year’s $42.3 million loss.

MIXI strengthens position on proposed PointsBet takeover

Shortly after PointsBet published the results, news broke on yet another development in the ongoing battle between MIXI and Betr Entertainment to take a majority holding in the group.

MIXI confirmed its voting power in PointsBet exceeded the 50% threshold. This triggered a two-week extension to the acceptance period for its offer, which had been due to conclude on 29 August. It will now run through to 12 September, allowing shareholders more time to consider the proposal.

Earlier in August, MIXI submitted what it said would be its final bid for PointsBet. This saw it offer $1.25 in cash per share, although this would rise to $1.30 per share if it were to secure more than 90% of the total holding.

However, this latter price is unlikely, with Betr – which has tabled several takeover proposals of its own – saying it would not accept the MIXI offer. This is despite PointsBet encouraging shareholders to accept the MIXI bid and reject Betr.

This has not deterred Betr, which has returned to the table several times with improved offers. Its latest, all-share offer values PointsBet at $1.40 per share. But the initial response from PointsBet was the same, in that it said shareholders should reject the bid in favour of MIXI’s proposal.

However, writing in his post-FY25 earnings commentary, Betr Executive Chairman Matthew Tripp maintained the operator was in a good position to take full control of PointsBet.

“We continue to believe that our offer for PointsBet presents superior value for both Betr and PointsBet shareholders and we remain disciplined as we evaluate further opportunities to accelerate growth,” he said.