When it comes to witty advertising, meme-loving sports fans give marketing professionals unlimited creative licence but going back to basics, Pointsbet (ASX: PBH) increased it’s instagram following five-fold by simply offering a golf date with Paige Spiranac.
Signing on as a global brand ambassador in January 2021, the former professional golfer has graced the screens of sports broadcasts across Australia and the United States since. So strong has her marketing pull been, Pointsbet’s promotion to play a round of golf with Paige has increased its social media presence to more than 7 million followers. The Company’s US Instagram followers even increased 5x compared to the December 2020 figure.
By having so many followers opt into their social media marketing, Pointsbet now ranks second by follower number amongst all US wagering operators, the key market targeted since expanding its Australian operations.
In less interesting news to those hoping to win a golf date with Mrs Spiranac, Pointsbet also reported a 236% increase in betting turnover for the quarter ended 31 March 2021, the key metric to bookmaker revenue where by they take a % cut (vigorish).
The biggest value for shareholders comes in the active customer numbers, which Mrs Spiranac can be attributed to driving, which increased by 90% pcp in Australia (83.3k) and a whopping 461% pcp in the United States (22.7k).
As legalised sports betting continues to be rolled out across the United States, each new territory is a greenfield market for wagering operators within the world’s most lucrative sports market. The value of active customers has continued to be the underlying value between a bevy of acquisitions as the largest operators: Flutter Stars, Entertain, Bet365 and GVC have been super active on the M&A front over the past five years.
With legislation still being rolled out across individual US States, it is a gradual growth process where some of those multinationals are sitting on the sidelines in the US, likely seeking an acquisition target rather than building their own audience – a timely and costly exercise. But at the forefront of the cultural transformation around legalised wagering, Pointsbet has market access to 16 States.
As at 31 March 2021, Pointsbet had a balance of $328 million with net cash used in operating activities in the quarter being $27.4m.
Shaq was also signed as a brand ambassador alongside Paige Spiranac btw…
*Owners of this website are PBH shareholders
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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