BlueBet Holdings announced a 12.6% rise in revenue for the first six months of 2024, largely due to record-breaking turnover. However, higher costs resulted in a larger net loss.
Revenue for the six months to 31 December hit AU$27.8m (PS14.3m/EUR16.7m/US$18.1m), up from $24.7m in H1 of 2023 at BlueBet. BlueBet said that the record betting turnover of $319.5m in the first half was a major factor.
BlueBet’s Australian operation grew 13.0% in the six-month time period, with revenues reaching $27.9m. The number of active customers also increased by 13.0% in Australia, helping to boost turnover from $298.7m up to $60.9m.
BlueBet received some negative news against the backdrop of this growth. The Victorian Gambling and Casino Control Commission cited BlueBet in August for violating the state advertising rules. BlueBet, if found guilty, could be fined up to AU$945,187.
BlueBet continues to expand in the US
BlueBet suffered a North American loss of 131,000 dollars for the first half. The loss was higher than $71,000 reported during the same time period last year, as the company’s expansion in Canada has led to increased costs.
BlueBet’s biggest news is that its turnover has increased by 1,050% to $20.7m. The number of active customers increased during the first half, as a result of expansion to new states.
BlueBet now operates in four US States: Colorado, Indiana and Iowa, plus, since last month, Louisiana. ClutchBet B2C is available in Louisiana through a partnership between Louisiana Downs Casino and Horseracing Track.
Bill Richmond, CEO of BlueBet said that progress is being made towards its second phase for entering the US market. This focuses on launching a white-labelled B2B sportsbook-as-a-solution offer, with discussions ongoing with potential B2B partners.
Increased costs hit bottom line
BlueBet reported that costs in several areas were up. Cost of wagering increased by 12.9%, to $13.1m. This is in line with the revenue growth.
In terms of other expenditures, the largest outlay was for employee benefits at $8.5m. Advertising and marketing – the previous core spending area – was cut by 27,2%, to $8.3m.
The overall increase in spending offset the revenue growth, resulting in a loss before tax of $12m. This is higher than the $11.4m recorded for 2023. BlueBet received $1.8m of tax benefits, but after accounting for the negative impact on foreign exchange translation and a loss of $61,000, it did not prevent its net loss from increasing.
Net loss for H1 was $10.4m compared with $9.9m the year before. The operator managed to lower the consolidated EBITDA from $10.5m down to $9.2m in the first half.
