BlueBet, a reputed gambling firm, disclosed a promising narrative of financial success in its Q3 earnings report, with revenues driven largely by growth across various betting segments. In a remarkable flourish within the industry, the Australian-based betting operator reported a turnover of AUS$151.6m (approximately £79.1m/€92.1m/US$98.5m), marking a significant uptick spurred by expansion in its sports, horse racing, and greyhound racing segments.
Particularly notable was the impressive turnover of AUS$139.6m from its Australian operations, a surge of 17.2% from previous figures. This increase was credited primarily to a robust enhancement in sports and greyhounds wagering. Indeed, sports betting turnover soared to $32.3m, up by a staggering 48.0% from Q3 of the previous year, while greyhound racing turnover rose by 22.2% to reach $33.0m.
The horse racing sector was not left behind, experiencing a 6.4% rise to $65.2m in turnover. Nonetheless, harness racing appeared to have faced a slight setback, with turnover marginally declining by 1.0% to $9.1m.
BlueBet’s ambitions have not been confined within Australian borders. The U.S. market has also been a target for its strategic operational growth, with turnover from U.S. operations contributing an additional $12.0m. BlueBet has been expanding its U.S. presence, marking a significant leap from Q3 of the previous year where turnover hovered at merely 1.1m. Key to its U.S. strategy was the January launch in Louisiana following an April 2022 market access acquisition through the ClutchBet B2C brand, extending BlueBet’s reach that already included Iowa and Colorado.
Close on the heels of its financial results, BlueBet announced the acquisition of Betr, the wagering enterprise established by industry stalwart Matt Tripp. The transaction involves the issuance of approximately 265.4 million fully paid shares to Betr shareholders and is projected to be finalized by 1 July.
Future plans and financial forecasts for the merged entity were detailed in BlueBet’s Q3 report, suggesting a favorable financial horizon with projected monthly EBITDA profitability in the first half of 2025. Moreover, full-year 2025 is expected to be EBITDA profitable, incorporating synergies but excluding one-time charges associated with transactions and the realization of these synergies. The operator also anticipates annualized cost synergies amounting to $14.0m by the end of 2024. Preparations for migrating Betr customers are in focus for the Australian market as the year advances.
In a breakdown of the Australian market performance, BlueBet reported a gross win of $18.7m—up 18.4%—and a net win of $15.9m. The customer base also grew, with active customers climbing by 7.3% year-over-year to reach 67,732.
Channel turnover saw growth across the board in Australia, with the iPhone channel standing out by generating $77.0m in turnover – the highest overall and up 15.8%. The website brought in $46.7m, while turnover from call centers inched up from $2.0m to $2.3m. However, turnover from Android users saw a decline of 6.3%.
Turning the spotlight to the U.S., BlueBet reported a gross win of $800,000 and a net win of $500,000. The Bet count for the U.S. market stood at 64,799, even as the cost per acquisition rose compared to previous quarters. Navigating the U.S. market dynamics, BlueBet adopted a more measured approach in its marketing strategy during Q3.
The overall picture of BlueBet’s performance in Q3 is one of growth, with a 13.7% increase in active customers to 73,089 year-over-year. Gross win and net win figures also climbed, by 23.4% and 36.7%, respectively, to $19.5m and $16.4m.
Customer receipts totaled $48.8m, while payments to customers hit $31.8m. Payments to suppliers and employees, inclusive of goods and services tax (GST), were recorded at $15.5m. Net cash from operating activities amounted to $1.2m, despite a $1.1m net cash loss in the U.S. juxtaposed against $2.4m net cash generated in Australia. Investment activities accounted for $546.7m in net cash use in Q3.
Marketing expenses for the quarter were balanced between the two focal markets, with $1.6m spent in Australia and $1.1m in the U.S.
However, the quarter was not without its challenges. BlueBet found itself facing regulatory scrutiny last week when it was penalized with a $50,000 fine by the Victoria Gambling and Casino Control Commission. The reason cited was the display of gambling advertising on or above a public road, an act in contravention of Victoria’s Gambling Regulation Act 2003, resulting in a total of 43 charges against the operator. Despite this setback, BlueBet remains optimistic about its growth trajectory and its recently initiated expansion endeavors.
