Home > Finance > BlueBet reports Q3 gains as Betr acquisition gets under way

BlueBet reports Q3 gains as Betr acquisition gets under way

| By Marese O'Hagan
BlueBet's turnover increased 26.1% year-on-year during the third quarter of its 2024 financial year, as work to acquire Matt Tripp's Betr accelerates.
BlueBet Q3

Turnover was AU$151.6m (£79.1m/€92.1m/US$98.5m), driven by improvements in BlueBet’s sports, horse racing and greyhound racing segments.

Turnover in Australia alone was AU$139.6m, up by 17.2%. BlueBet said this was fuelled by strong growth in sport and greyhounds betting. Sports betting accounted for $32.3m in turnover, a 48.0% improvement on Q3 2023, while greyhound racing grew 22.2% to $33.0m.

Horse racing increased by 6.4% to $65.2m. Meanwhile, harness racing turnover fell 1.0% to $9.1m.

Operations in the US made up the remaining $12.0m in turnover. BlueBet is increasing its presence in the US, with significant progress made in comparison with Q3 2023, when turnover was $1.1m. It launched in Louisiana in January, after securing market access in April 2022 through its ClutchBet B2C brand. BlueBet is already live in Iowa and Colorado.

BlueBet outlines details on Betr acquisition

The operator released its Q3 results almost two weeks after confirming that it would acquire Betr, the wagering business founded by Matt Tripp, following ongoing speculation. As part of the deal, BlueBet will issue around 265.4 million fully paid shares to Betr shareholders. The deal is expected to close by 1 July.

In its Q3 report, BlueBet outlined aspects of the future combined business. BlueBet projects monthly EBITDA profitability in H1 2025 for the combined business and for it to be EBITDA-profitable in full-year 2025. This includes synergies and excludes one-off transaction and synergy realisation costs.

The operator also expects estimated cost synergies of $14.0m, which are expected to be realised on an annualised basis by the end of 2024. It also noted that its focus for the remaining year in Australia would be to prepare for the Betr customer migration.

Relative success in Australia for Q3

For Australia, gross win was $18.7m up by 18.4%, while net win was $15.9m. The number of active customers for Australia was up 7.3% year-on-year to 67,732.

Turnover by channel saw growth across most segments in Australia. The iPhone channel generated $77.0m in turnover alone, the highest overall, up 15.8%. Website accounted for $46.7m. Turnover from call centres crept up from $2.0m to $2.3m yearly, while the amount generated by Android users fell 6.3%.

Turning to the US, BlueBet reported $800,000 in gross win and $500,000 in net win. Bet count was 64,799 for the market, while cost per acquisition rose 7.0% compared to Q2 and 22% compared to Q1. BlueBet noted that it had driven marketing in the US with a reduced approach during Q3.

BlueBet active customers up 13.7%

BlueBet’s overall performance in Q3 saw active customers grow 13.7% to 73,089 year-on-year. Gross win was $19.5m, up 23.4%, while net win edged up 36.7% to $16.4m.

Receipts from customers added up to $48.8m. Payments to customers totalled at $31.8m, while payments to suppliers and employees – inclusive of goods and services tax (GST) – hit $15.5m.

After considering $4,000 in interest received and $227,000 in interest and other finance costs paid, the net cash from operating activities was $1.2m. The $2.4m net cash generated in Australia was offset by $1.1m net cash loss in the US. In total, $546.7m in net cash was used in investing activities in Q3.

Marketing spend in the third quarter was $1.6m in Australia, compared to $1.1m in the US.

Last week BlueBet was hit with a fine of $50,000 by the Victoria Gambling and Casino Control Commission for displaying gambling advertising on or above a public road, contravening Victoria’s Gambling Regulation Act 2003. The operator was found guilty of 43 charges in total.

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