PointsBet confirms North America sale talks despite Canadian growth in Q3

PointsBet Canada recorded a 21% rise in revenue last quarter

PointsBet has announced that the company is in discussions over the sale of its North American business, which would include its operations in Canada.

Reports surfaced in mid-April regarding the potential sale of the firm’s US arm, with Australian Financial Review reporting that New York-based Moelis & Company had been hired to help facilitate its exit from the American market.

But any sale could be more encompassing across the continent, as PointsBet confirmed in a statement accompanying its latest quarterly report.

“Consistent with commentary previously provided to our investors and the market more generally, PointsBet continues to engage in discussions regarding strategic transactions that offer the potential to add value for our shareholders,” said PointsBet Managing Director and CEO Sam Swanell.

“The company is currently in discussion with multiple parties in respect of potential transactions that would involve part or all of our North American business. Certain negotiations are well advanced.”

The announcement comes despite a noticeable growth in PointsBet’s Canadian operations in Q3 FY2023 where its revenue was $5.47m, up 21% quarter-on-quarter and aided by igaming revenue of $3.23m (+24% QoQ).

Sports betting revenue was also up 17% on a quarterly basis to $2.14m (+17%) while gross win increased 37% to $45.6m in Q3.

PointsBet also entered the Ontario market last year and it was a move that appeared to pay dividends as its Canadian revenue came in at $6.1m for the second half of 2022, but that may not be enough to sway the minds of the hierarchy as they seek a sale of its North American operations.

Meanwhile, PointsBet has also confirmed that it is also in talks over the sale of its Australian operations, despite a breakdown in discussions with previous interested parties.

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