PBH -11.85%: a disappointing FY22 result from the wagering company today weighed on the stock price. Pointsbet has been spending money to grow aggressively and the marketing cost was nearly 80% of total revenue. This saw EBITDA miss expectations as losses widened to $243.6m despite a 52% increase in revenue. Cash grew to $472.7m, however, this relied on a $400m placement conducted at the start of the year, and an additional $94m top-up from SIG Sports in June. There was little in the way of guidance, as is normal for Pointsbet, however it was disappointing to not see any commentary around the SIG partnership or any progress in new markets since the start of FY23.
MM is frustratingly long PBH in the Emerging Companies Portfolio
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