The Pointsbet Holdings Ltd (ASX: PBH) share price is tumbling on the back of its full-year earnings today. In fact, the bookmaker is currently the worst-performing stock on the S&P/ASX 200 Index (ASX: XJO).
The companyâs shares opened Wednesdayâs session 4.5% lower at $3.14 before diving to a low of $2.87, a 12.7% loss.
It has since recovered slightly to trade at $2.96 right now, 10.03% lower than its previous close.
Letâs take a closer look at the ASX 200 bookmakerâs results for financial year 2022 (FY22).
Pointsbet share price plunges on FY22 earnings
As The Motley Fool Australia reported earlier, Pointsbet boasted $5 billion of sports betting turnover and brought in $296.5 million of revenue â a 52% year-on-year increase â last financial year.
On top of that, its gross win â the amount received from clients placing losing bets less the amount paid to clients placing winning bets Ââ rose 41% to $497.8 million. Its gross win margin also increased, lifting 0.6% to 9.9%.
However, that wasnât enough to elevate the companyâs bottom line into the green.
It posted a $267 million after-tax loss for FY22 while its earnings before interest, tax, depreciation, and amortisation (EBITDA) sank to a $243.6 million loss.
But management assured the market on the company’s future. Pointsbet chair Brett Paton and CEO Sam Swanell commented:
It is clear that North America will deliver the vast majority of regulated global gaming growth over the next decade.
We have now scaled our team, to access the in-house technology and market access to successfully compete in North America and have developed best in class partnerships ⦠which will help accelerate our trajectory to take advantage of this enormous opportunity.
The company also announced the appointment of Edward Hartman today. The former Fox Corporation executive will take on the role of chief strategic officer next month.
Todayâs fall included, the Pointsbet share price is trading 58% lower than it was at the start of 2022. It has also dumped 71% since this time last year.
For comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.
The post Pointsbet share price tumbles 10% as full-year losses deepen appeared first on The Motley Fool Australia.
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More reading
- Pointsbet share price in focus as FY22 revenue lifts 52%
- Why is the PointsBet share price rising on Tuesday?
- Here are the top 10 ASX 200 shares today
- Broker tips PointsBet share price to jump 60%
- Here are the top 10 ASX 200 shares today
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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