Why PointsBet’s Board Urges Shareholders to Accept MIXI Australia’s $1.25 Cash Offer
PointsBet reports a 6% revenue increase and returns to normalised EBITDA profitability in FY25, while the board unanimously backs MIXI Australia’s all-cash $1.25 per share takeover offer, urging shareholders to reject a rival hostile bid.
- FY25 revenue up 6% to A$261.4 million
- Normalised EBITDA turns positive at A$11.2 million
- MIXI Australia’s takeover offer carries a 50.6% premium
- PointsBet board unanimously recommends accepting MIXI’s offer
- Hostile scrip bid from Betr rejected by PointsBet board
Financial Performance Highlights
PointsBet Holdings Limited has delivered a solid FY25 financial performance, with revenue climbing 6% to A$261.4 million and a return to normalised EBITDA profitability of A$11.2 million, a significant turnaround from the prior year’s loss. The company’s gross profit rose 6% to A$137 million, supported by improved net win margins and operational efficiencies, particularly in its Australian and Canadian markets.
In Australia, PointsBet recorded a 3% increase in revenue to A$218.5 million, with net win margins improving to 10.4%, marking the sixth consecutive quarter above 10%. Despite a 14% decline in turnover, the company benefited from a shift towards higher-margin products and better gross win margins. Meanwhile, the Canadian segment saw a 26% revenue increase to A$42.9 million, driven by strong growth in both sports betting and iGaming, although EBITDA remains negative at A$15.1 million, albeit improved from the prior year.
Takeover Battle, MIXI Australia vs Betr
The FY25 results announcement coincides with a pivotal corporate development, the PointsBet board’s unanimous recommendation to accept MIXI Australia’s unconditional all-cash takeover offer of $1.25 per share. This offer represents a substantial 50.6% premium over the pre-announcement share price of $0.83 and provides shareholders with immediate and certain value.
MIXI Australia currently holds a 47.34% stake in PointsBet and has made clear it will not entertain the rival hostile scrip offer from Betr. The PointsBet board has strongly urged shareholders to reject Betr’s proposal, citing concerns over the quality of Betr’s business, the overstatement of potential synergies, and the risk of reduced economic interest in PointsBet. The board also highlighted the liquidity risks associated with Betr’s shares and the uncertainty surrounding Betr’s selective buy-back intentions.
With MIXI Australia poised to gain effective control post-offer, PointsBet plans to offer MIXI representation on its board, reflecting the new ownership structure. The board’s guidance suggests that if MIXI’s offer closes without a superior proposal, PointsBet’s share price may decline in the short term, reinforcing the attractiveness of the cash offer.
Strategic Outlook and Market Position
PointsBet continues to invest heavily in product and technology to maintain its competitive edge in both Australia and Canada. The company also remains an active advocate for gambling advertising reform in Australia, supporting measures aimed at sustainable and responsible marketing practices, including digital age gating and volume caps.
Despite regulatory and market challenges, PointsBet’s growth in active clients to a record 295,800 and improved profitability metrics underscore its operational momentum. The company’s balance sheet remains solid with corporate cash of A$22.7 million at year-end, supporting ongoing investments and strategic initiatives.
Bottom Line?
As MIXI Australia’s takeover offer gains momentum, PointsBet’s FY25 results underscore a company at a crossroads, balancing operational progress with significant ownership change.
Questions in the middle?
- Will a superior takeover proposal emerge to challenge MIXI Australia’s offer?
- How will PointsBet’s strategic investments impact profitability in the competitive Canadian market?
- What regulatory developments in gambling advertising reform could affect future growth?
