BlueBet’s net revenue for FY23 decreased slightly year-on-year, but turnover increased as the company’s US expansion plans began to take shape.
Revenue was AU$49.0m (PS25.1m/EUR29.3m/US$31.7m) for the 12 months to 30 June, dipping by 1.3% compared to FY22. Turnover increased 4.8% to AU$536.6m.
BlueBet cited its performance in Australia for the year as a highlight. The Victorian Gambling and Casino Control Commission issued it a fine of $945,187 just days before its results for the full year. The final outcome of the legal proceeding could affect this figure. BlueBet placed three billboard advertisements between 29 August and the 11th September of last year. This was in violation of state marketing laws.
BlueBet Australia’s active customer base grew by 22.7%, to 65.4 millions. The turnover grew by 3.5%, to $530.0m. This accounted for most of the total turnover for the entire year. BlueBet attributes this growth to an increase of 24.0% in marketing expenditure, due to increased investments in the first half of the year.
BlueBet stated that it anticipates being EBITDA positive in Australia for FY24.
The state of the game in the US
BlueBet has made significant progress in its US expansion plans. It will launch its brand in Iowa in August of 2022, and Colorado in April of 2023. Launching in Iowa, the focus was on product improvement.
Bill Richmond, BlueBet’s chief executive, stated that the focus of the year was to lay the foundations for BlueBet’s growth in Australia and the US.
Richmond said that FY23 was an important year for strategic execution, laying the foundations for long-term success in Australia and United States. BlueBet’s product is its key differentiator, and it has been the main reason for the impressive growth in market share in Australia and our early success in US.
BlueBet said that it would launch in Louisiana, Indiana and Indiana by October 2023.
We were happy to accept bets on Colorado and Iowa in the past, and look forward to doing so in Louisiana and Indiana during FY24.
The net loss in FY23 is higher
BlueBet’s payouts totaled $465.0m in the last year, an increase of 5.3%. The gross revenue was $71.5m which is an increase of just 1.5%.
Taxes on goods and services and promotions totaled $4.9m, bringing the net revenue to $24.8m. The cost of sales was $24.1m, which brought the net profit for the year to $24.8m.
Advertising and marketing expenses accounted for the largest portion of other costs, at $19.2m. Employee benefits accounted for $12.4m. IT, share-based payments, administration and IT were the remaining expenses.
The EBITDA fell to a loss $18.2m. This is a significant drop from the $5.4m loss in the previous year. Depreciation costs were $2.7m and finance costs $517,000. The pre-tax profit was reduced by $21.5m due to these costs.
BlueBet paid tax of $2.7m throughout the year. After calculating the loss, and adding in the $152,000 for foreign currency conversion, the total loss for this year is $18.6m. This is an increase of $12.8m.
