The PointsBet Holdings Ltd (ASX: PBH) share price jumped 4% higher in early trade today to as high as $6.24 before being partially sold down. The increase in the Pointsbet share price came following the company’s announcement of an important new agreement in its United States market.
New Sporting Agreement in the US
PointsBet has announced today that its US subsidiary has entered into a new agreement with Pacers Sports & Entertainment. The multi-year agreement will see the company’s PointsBet USA subsidiary become an Official Sports Gaming Partner in respect to the National Basketball Association (NBA) for the Indiana Pacers team.
PointsBet branding will be positioned along the out-of-bounds space that is located between the base line and the team bench. This is the first time in the US that a betting operator has been able to advertise in this position.
Also, as part of the agreement, PointsBet signage will be permitted to be displayed in the Pacers’ home arena, The Fieldhouse. The Fieldhouse is located in downtown Indianapolis. In addition, PointsBet will be able to utilise online advertising on the Pacers’ range of digital platforms. This will include offering unique promotions to fans.
PointsBet was appointed earlier this year to become an Authorised Sports Betting Operator of the NBA. This was PointsBet’s first partnership with a professional sports league in the US.
Johnny Aitken, PointsBet USA CEO commented: “Indiana represents a massive opportunity for PointsBet, and we will take a heavily localized approach to ensure we are delivering the best overall customer experience Indiana sports fans and bettors are seeking….”
Recent financial performance
PointsBet recently provided the market with a fourth quarter update. The company delivered turnover of $349.4 million, which was a very strong increase of 57.9% on the prior corresponding period. Growth was very much driven by its Australian operations, with growth of 80.5% during this period. In comparison, its US operations saw a decline in turnover. In respect to the full financial year for 2020, PointsBet recorded turnover more than double that of a year prior.
PointBet share price performance
The PointsBet share price has risen strongly over the past 12 months from $3.19 to now be trading at $6.12. That’s a very strong 92% increase. The company’s share price was hit very hard during the early phase of the pandemic, falling to as low as $1.19 in late March. However since then the PointsBet share price has recovered all of those losses plus substantially more.
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Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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