Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

PointsBet Holdings Ltd (ASX:PBH) shares knocked down 25%

The PointsBet Holdings (ASX: PBH) share price was trading 25.1% lower on Friday following its response to the recent cancellations of global sporting events and tournaments. 

The PointsBet Holdings (ASX: PBH) share price was trading 25.1% lower on Friday following its response to the recent cancellations of global sporting events and tournaments in the wake of Coronavirus.

For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 4949.6, down 6.69%.

Featured video: SaaS Multiples in valuation

In the Rask featured video above, I explain SaaS metrics and valuation multiples in great detail. For more tutorials, please take a free investing or finance course on Rask Education. Click here to take a course.

Who is PointsBet Holdings?

PointsBet is a bookmaking/gambling business operating in Australia and USA. It provides its wagering services via a cloud-based platform.

This morning, the sports betting technology company reported the potential impact on its business following decisions by major sporting codes, including the NBA and soccer leagues like LaLiga, which have chosen to cancel or postpone their tournaments.

Just yesterday, PointsBet released an announcement saying it had entered into an agreement to be the exclusive USA betting partner for Spanish soccer league, LaLiga.

PointsBet has also entered a similar agreement with the world’s most prestigious basketball league, the USA’s NBA tournament.

Unfortunately, both of these sporting leagues have been cancelled or postponed in the past 48 hours as the world gets on top of the spread of COVID-19, aka Coronavirus.

In a step to reassure the market, PointsBet said had $147.9 million of cash as at 31 December 2019, along with no borrowings.

“It is important to note that marketing costs are predominately variable in nature, thus providing PointsBet flexibility to adjust and optimise its marketing spend given the developing circumstances.” – PointsBet

The company said it will keep investors updated on its cash flow and financial position through its quarterly ASX releases. PointsBet is also monitoring announcements from Australia’s racing bodies and other global sporting leagues which could be affected by the expected slowdown.

PointsBet isn’t the only gambling business to feel the pain from the recent outbreak. Crown Resorts Ltd (ASX: CWN), Tabcorp Holdings (ASX: TAH) and Jumbo Interactive Ltd (ASX: JIN) shares have all be caught up in the recent sell-off, falling between 27% and 49% since the beginning of the year.

PointsBet Holdings shares were last seen trading at $1.93, giving the company a market capitalisation just more than $300 million.

[ls_content_block id=”14948″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content