The Australian betting company BlueBet has reported a significant rise in revenue, reaching AU$27.8 million for the six months ending 31 December, an upturn from $24.7 million in the first half of 2023. This financial leap is attributed to an all-time high wagering turnover of $319.5 million.
During this period, BlueBet managed to bolster its Australian operations, achieving a 13.0% increase in revenue, culminating at $27.9 million. The growth in Australia was further supported by a parallel increase in active customer numbers, which also surged by 13.0%, thereby contributing to a 6.9% rise in turnover, which totaled $298.7 million.
The expansion and revenue growth in Australia, however, was set against a backdrop of potential regulatory challenges for BlueBet. In a concerning development, the company found itself in a tight spot in August last year when the Victorian Gambling and Casino Control Commission charged them with contravening state advertising protocols. Should a guilty verdict be delivered, BlueBet could be hit with penalties up to AU$945,187.
On the North American front, BlueBet experienced a less favorable H1, reporting a loss of $131,000. This figure represents a downturn compared to the $71,000 loss posted during the same timeframe in the previous year, and can largely be put down to expanding overheads made necessary by the company’s continuing growth pursuits in the United States.
Nevertheless, a key positive takeaway for BlueBet from the six-month stint was the notable surge in turnover, which skyrocketed by an astonishing 1,050.0%, amounting to $20.7 million. Coinciding with this was a spike in active customers that came as a result of entering new states.
In the US, BlueBet now boasts a presence in four states, including the recent addition of Louisiana. Under its consumer-facing brand ClutchBet, BlueBet operates in this region in partnership with the Louisiana Downs casino and horseracing track. BlueBet CEO Bill Richmond, speaking on the company’s progress, has emphasized the movement towards the second phase of their US market strategy. This phase is geared towards launching a B2B sportsbook-as-a-service offering, with BlueBet reportedly in talks with potential B2B partners.
When examining expenditure, there was an evident escalation in costs across various segments. This uptick included the wagering cost, which climbed 12.9% to $13.1 million in alignment with the revenue expansion. Additionally, staff benefits emerged as the prominent expense at $8.5 million, overshadowing advertising and marketing expenses, which actually saw a 27.2% decrease to $8.3 million.
The elevated expenses overall tempered the impact of revenue growth, culminating in a pre-tax loss of $12.1 million, more pronounced than the $11.4 million loss experienced in the first half of 2023. While BlueBet did receive $1.8 million in tax benefits, a $61,000 negative impact from foreign currency translation still led to an overall net loss.
For the reported half-year period, BlueBet tallied a net loss of $10.4 million, which compared to a net loss of $9.9 million in the prior year. Despite this, the operator succeeded in narrowing the consolidated EBITDA loss down from $10.5 million to $9.2 million.
BlueBet’s H1 report sketches a picture of a company that, while witnessing significant gains in revenue and betting turnover through aggressive expansion and burgeoning customer bases, finds itself navigating the complexities of both operational scale-up and tightening regulatory landscapes. As it eyes the future, BlueBet balances the potential costs of growth against the drive for financial consolidation in an increasingly competitive market.
