BlueBet (ASX:BBT) share price jumps 8% on record first quarter

BlueBet expects to make its US market debut in early 2022

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The BlueBet Holdings Ltd (ASX: BBT) share price is soaring on Thursday after the company released its first-quarter results for FY22.

At the time of writing, the BlueBet share price is up 8.09% to $1.87. It had earlier risen as high as $1.97.

What did BlueBet announce?

The BlueBet share price is surging after the company delivered a record first-quarter performance across key metrics. These included bet count, turnover, and net win. Highlights included:

  • Turnover of $125.9 million, up 67.4% relative to the prior corresponding period (pcp);
  • Net win of $14.8 million, up 87.6%;
  • Active customers at 39,195, up 63.8%;
  • Operating cashflow of $3.3 million; and
  • Cash balance of $57.8 million at 30 September 2021.

However, BlueBet faced a major speed bump in its ambitions to enter the lucrative US sports betting market.

In early September, the company withdrew its application for a sports betting permit in the US State of Virginia. BlueBet was advised the licences would, at this point in time, be granted to operators which had experience in other states.

As a result, the BlueBet share price tumbled 21.6% to $1.935 on the day of the announcement.

Despite its shortcomings, BlueBet highlighted its Iowa licence remains on track after its Advanced Deposit Sports Wagering Operator Agreement with Q Casino was approved by the Iowa Racing and Gaming Commission.

BlueBet expects to take its first bets in Iowa in March 2022.

In addition, the company said it remains agile in the pursuit of additional licences. Its current targets are Colorado, Tennessee, and Maryland.

BlueBet share price summary

BlueBet made its ASX debut on 2 July at a listing price of $1.14. It closed 55% higher at $1.775.

The BlueBet share price surged to an all-time high of $3.03 by late August but then proceeded to go full-circle. The shares have since been trading around the $1.80 level.

Motley Fool contributor Kerry Sun 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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