PointsBet Holdings (ASX:PBH) has downgraded its full fiscal year revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance after weaker-than-expected results in Australia and Canada, falling short of analyst forecasts, according to a Jan. 31 note by Jarden Research.
The company now expects full fiscal year EBITDA of AU$11 million to AU$14 million from the previous AU$11 million to AU$16 million, while revenue is forecasted to be between AU$260 million to AU$270 million, reduced from AU$280 million to AU$290 million, Jarden said.
The company reported fiscal-first half Australian turnover of AU$1.15 billion, down 23% year-on-year and below the analyst's estimate of $1.5 billion, driven by a shift from lower-margin clients, Jarden added.
PointsBet's fiscal first-half net win for Australia was AU$117 million, up 4% year-on-year but below the AU$133 million estimate, the broker noted.
Meanwhile, performance in Canada also missed expectations. PointsBet's net win in Canada was AU$18.1 million, missing the AU$24.9 million estimate by 27%, due to unfavorable NFL and iGaming results.
Despite setbacks, the gaming firm reported a modest AU$500,000 operating cash inflow for the fiscal first half ended Dec. 30, beating Jarden's AU$600,000 outflow, and expects positive net cash flows in the second half of the fiscal year.
Jarden Research has a buy rating and AU$1 price target on PointsBet Holdings.
Shares of the company fell 2% in recent Tuesday trade.
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