BlueBet (ASX:BBT) share price jumps on EBITDA boost

Shares in the Aussie sports betting company are climbing higher on Tuesday.

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The BlueBet Holdings Ltd (ASX: BBT) share price is rebounding strongly on Tuesday. It comes as the Aussie sports betting group reported results for the year ended 30 June 2021 (FY21) to the market this morning.

BlueBet share price jumps on EBITDA boost

BlueBet provided its latest financial and operational update including the following key points:

At the time of writing, the BlueBet share price is up 1.2% to $2.54, having slipped 3.5% lower on Monday.

What happened for BlueBet in FY21?

BlueBet's FY21 results exceeded its prospectus forecasts with strong growth in revenue, earnings and active customers. The wagering group increased market share in Australia and pushed into the lucrative US sports betting market.

BlueBet pointed to increased marketing efforts and headcount as helping boost revenue and underlying EBITDA in a strong year of growth.

Subsequent to 30 June, BlueBet's US subsidiary and its partner unsuccessfully applied for one of 10 licences to operate an online sportsbook in Arizona, USA. News that it failed to secure the licence sent the BlueBet share price plummeting lower in yesterday's trade.

What did management say?

BlueBet CEO Bill Richmond was positive about the result:

FY21 has been an outstanding year for BlueBet. We have seen a massive increase in our Active Customers this year and our bet count almost doubled.

This has flowed through to exceptionally strong and profitable financial results which have exceeded Prospectus forecasts. We are seeing this strong momentum continuing into FY22.

On growth prospects for the current financial year, Richmond added:

We are already executing on our US growth strategy and have secured our initial skin agreement in Iowa, where we expect to start taking bets in early 2022. We expect to secure additional licences in other US states in FY22 and grow the business strongly there.

What's next for BlueBet and its share price?

The Arizona licence rejection is a blow for the Aussie sports betting company but it did secure the Iowa agreement. However, BlueBet said it enters the current financial year with strong momentum across key markets and an eye on further US licences to maintain growth.

The BlueBet share price is up 122% in 2021 with a market capitalisation in excess of $500 million.

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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