Insights

BlueBet share price leaps 8% before flatlining following robust quarter

The sports betting company posted its earnings today. Let’s take a look at what it reported.
The post BlueBet share price leaps 8% before flatlining following robust quarter appeared first on The Motley Fool Australia. –

The BlueBet Holdings Ltd (ASX: BBT) share price is flat this afternoon after posting strong gains early in the session.

BlueBet shares caught a bid at the open and soared 8% following the release of the company’s quarterly results for the period ended 30 June 2022.

However, the BlueBet share price has since retreated and is now back to where it ended Thursday’s session — at 59.5 cents.

BlueBet revenue, net win gains year on year

Key takeouts from the quarter for the sports betting company include:

Revenue up 31.3% to $126.7 million, driven by strong customer and Betcount growth
Net win up 27.3% to $12.8 million
Net win margin 10.1% in Q4 and 10.7% for FY22
Total 53,328 active customers at the end of June, up 64.2% on the prior corresponding period (PCP)
Rolling 12-month first-time depositors (FTD) up 60.8% on PCP in Q4
Cost per FTD (CFTD) of $386 being 2.7x annual customer value
Corporate cash balance at the end June of $43.7 million

What else happened this quarter for BlueBet?

The company secured its fourth US market access agreement, partnering with Caesars Entertainment Inc on a 10-year term.

It will operate a new business-to-consumer (B2C) online sportsbook in Indiana under the recently announced ClutchBet brand.

This marks the first stage of BlueBet’s two-stage “capital lite” strategy for US entry — that being to launch ClutchBet and “demonstrate the capability of its technology and team to run profitable sportsbooks in the US”.

The company also left the quarter with 53,328 active customers, representing a 64% increase on the PCP.

Within this group, average annual customer value is above $1,000, “providing a 2.7x return on our marketing investment to acquire these customers,” BlueBet says.

What’s next for BlueBet?

With the first stage of its capital light strategy nearing completion, it can now focus on looking ahead. It said:

While there remains significant opportunity for B2C expansion into other target U.S. states, BlueBet’s focus and capital will now be directed towards executing in each of the four initial states, alongside seeking partners nationwide for the launch of its white-labelled Sportsbook-asa-Solution B2B offer, the second stage of its US entry strategy.

BlueBet is ready to go-live in Iowa under the ClutchBet brand pending final approvals. With platform testing successfully completed and final certification from GLI to shortly follow, the final step before receiving licence approval from the Iowa regulator is to complete geo-location testing. Once complete, the company expects to have its license approved in the coming weeks.

In the last 12 months, the BlueBet share price is down more than 73%. It has also fallen around 60% this year to date.

The post BlueBet share price leaps 8% before flatlining following robust quarter appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

3 ASX All Ords shares tumbling into the weekend
Players gonna play: 3 ASX shares set for a strong reporting season

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info