Shares in the Australian betting company rocketed up on news of a new partnership.
Pointsbet Holdings Ltd [ASX:PBH] has announced a five-year exclusive media partnership with NBC Universal in the United States.
With the market reacting very positively to the news, the PBH share price is trading at $11.13 at the time of writing — up a whopping 48.4%.
What’s happening at Pointsbet?
The announcement of the new partnership is potentially pivotal for the company.
NBC Universal is a goliath in sporting terms. It is the number one broadcaster in sports, broadcasting the Tour de France, Super Bowl, NASCAR, Premier League, Indy 500, and more.
This impressive portfolio of sports gives NBC:
- 184 million viewers
- 85% reach (of the US sports betting market)
- 100% availability to US households
Along with this is the change to gambling laws in the state of Illinois, which has legalised online sports betting.
The partnership of Pointsbet and NBC Universal could leverage this opportunity well.
NVC has a digital reach of 5.2 million in the Chicago market, across NBC Sports Chicago, NBC Chicago and Telemundo, along with exclusive local broadcast rights for iconic franchises with NBC Sports Chicago, which includes the following teams:
- Chicago Bulls
- Chicago White Sox
- Chicago Blackhawks
The announcement was accompanied by the prediction that by 2025, the combined sports betting and iGaming market will exceed US$12billion.
Where to from here for Pointsbet?
The share price revival coincides with large increases in turnover and net revenue from FY19 to FY20.
Turnover increased 69.5% and net revenue shot up 158.9%. With this new partnership in place, upwards momentum could drag the PBH share price higher.
With the company only being listed back in June 2019, there is not a great deal of share price history to extrapolate from.
However, based on what has taken place, some price points can be assumed at the levels of $11.80 and $10.20.
The current PBH share price falls in this range.
These two levels may provide support and resistance in the future.
If the share price were to come back dramatically, then the natural place to look for support would be at the previous all-time high of $7.92, achieved in June 2020 (see the blue arrow in the chart above).
For Money Morning
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